CHICAGO—As reported in GlobeSt.com, a new report fromMarcus & Millichap states that vacancy amongthe Chicago region's retail properties has tightened tothe lowest level in 10 years. Furthermore, accordingto its 2018 forecast, that rate will drop a further 64 bps after anestimated 4.4 million square feet of absorption. But one of thereasons for that decline is that developers have remained carefulabout building new spaces, partly because the competition frome-commerce has made the future of many retail outlets souncertain.
“Construction for retail properties today is definitely lessthan in the pre-recession years,” AustinWeisenbeck, senior vice president of investments, Marcus& Millichap, tells GlobeSt.com. “The slowdown is predominantlydue to fewer tenants actively expanding right now, and lendersbeing more cautious about providing financing until a property isnear fully leased. Many retailers are in the process of redefiningthemselves as the industry continues to evolve and adjust asconsumers do more of their shopping online.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
