Weighted average asking rents for "standard" buildings such as Doral Plaza in the Downtown submarket have risen from $1.49 per sf in January 1998 to $1.83 per sf this month, Jaeger says, a number that has been flat throughout the year. However, vacancy rates have gone up from 4.3% to 6.9% during that same period, according to a report given recently to the Chicago Real Estate Council. Concessions, meanwhile, are running about 5.2%.
The numbers are bit more dramatic in the "luxury" buildings, such as Eugenie Terrace. While rents per sf have shot up from $1.74 per sf to $2.14 per sf, vacancy rates have jumped from 3.2% to 7.5%, continuing a trend that has seen occupancy rates decline for five straight quarters. Meanwhile, the cost of concessions run 6.6%.
The multifamily rental picture is hardly bleak, however. Continued condominium conversions have taken rental units out of the market.
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