The Midwest property markets are riding asurge, thanks to the apartment sector, gaming industry andcorporate headquarters business.
Chicago is one of the leading indicators of US real estate'soverall health, and both are experiencing slow but steady growth in2012, says Hugh Williams, a principal at Avison Young. For theChicago office market this year, Williams sees institutionalcapital chasing deals across the city, but as with the rest of thecountry, the suburbs have slowed down considerably.
"Class A assets are trading in the high-5% to low-6% range,which indicates they have strong fundamentals, but class A suburbanoffice is trading in the 9% cap rate range," Williams says."Suburban office has suffered as dynamics are too dependent uponwhite-collar job growth, low fuel costs, and suburban sprawl."
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