X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

CHICAGO-Downtown multifamily rental occupancy has entered territory not seen since the late 1990s, according to CB Richard Ellis and Appraisal Research Counselors, moving up 1.6 percentage points to 96.8%. Meanwhile, suburban multifamily rental building owners have seen occupancy rates rise to 94.3%, a slight decrease from the previous quarter but slightly higher than the third quarter of 2004.

Less new construction and continued condominium conversions have pushed occupancy rates higher, according to the two firms, which have eliminated the need for concessions at many properties. Although 1,260 new units will be delivered this year, that figure is 26% below average for the previous 10 years, according to researchers. In addition, they note an average year sees 1,000 Downtown rental units converted to condominiums, but as many as 5,000 could go condo this year. CB Richard Ellis adds another 1,000 units in the suburbs could become condominiums.

CB Richard Ellis notes the 548-unit Shoreham project in Lakeshore East as well as the 190-unit MDA Chicago City Apartments have done leasing without concessions, while The Bernardin in River North not only has eschewed concessions, but is commanding rents of $2.43 per sf.

“Overall, our outlook on the conditions of the Chicago rental market remains bullish,” say CB Richard Ellis vice presidents Dan Cohen, John Jaeger and Melissa Strauss.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.