7 Key Stats for the Chicago Commercial Real Estate Market

Chicago Commercial Real Estate Market Stats - Cawley Commercial Real Estate Real Estate 2020

Chicago is still the third most populous city in The United States, despite having a few years with slowed population growth. In addition to being the third most populous city, it is also the third most important contributor to the United States’ GDP. It is very much one of the economic powerhouses of the country due to its central, well communicated location and cultural importance.

Every year Cawley Commercial Real Estate combs through the real estate statistics in The Windy City to give a holistic view of the state of the real estate market overall. The yearly report covers the 4 major commercial real estate markets in the region: industrial, office, retail, and multifamily. This is in conjunction to the specific Chicago industrial and Chicago office real estate reports updated every quarter.

The key metrics Cawley pulled for this Chicago commercial real estate report are: cap ratesproperty values, property sales, vacancy raterental growthabsorption, and construction statistics.

Cawley Commercial Real Estate Commercial Real Estate Cap Rates 2020

1) Chicago Cap Rates

Chicago’s commercial real estate cap rates for all sectors are at or above industry averages. A good cap rate generally falls between 5.5% and 7%, depending on the market. Chicago’s cap rates are well within those positive standards.

  • Office: 7.3%
  • Industrial: 6.9%
  • Retail: 7.5%
  • Multifamily: 6.1%

2) Chicago Property Values and Sales

These metrics provide an idea of the overall value of the respective commercial property markets in Chicago, as well as the recent sales volume and the % of change in average sales price over the last year.

Chicago Property Asset Value

  • Office: $111.8B
  • Industrial: $98.3B
  • Retail: $104.6B
  • Multifamily: $101.6B

Chicago Property Sales Volume

  • Office: $2.9B
  • Industrial: $5.3B
  • Retail: $2.6B
  • Multifamily: $3.4B

Chicago Property Sales Price Change % (12 Months)

  • Office: 2.3%
  • Industrial: 3.4%
  • Retail: -0.1%
  • Multifamily: 1.9%

3) Chicago Vacancy Rates

Due to the current pandemic and the implementation of social distancing, it will be no surprise if vacancy rates for the office and retail markets climb a bit; however, industrial real estate demand is actually on the rise, and demand for housing / apartments is staying steady.

Currently, the industrial, retail, and multifamily vacancy rates are sitting at a healthy level. Even Chicago’s office vacancy rate is above the national average, which is nearly 16% currently.

  • Office: 12.3%
  • Industrial: 6.3%
  • Retail: 6.3%
  • Multifamily: 6.7%

4) Chicago Rent Growth (12 Months)

  • Office: 2.1%
  • Industrial: 4.0%
  • Retail: 0%
  • Multifamily: -0.4%

5) Chicago Absorption (12 Months)

  • Office: 1.6M SF
  • Industrial: 22.3M SF
  • Retail: 2M SF
  • Multifamily: 10,608 Units

6) Chicago Delivered Property Assets (12 Months)

  • Office: 1.6M SF
  • Industrial: 22.3M SF
  • Retail: 2M SF
  • Multifamily: 10,608 Units

7) Chicago Properties Under Construction (12 Months)

  • Office: 28 Properties =  7,021,489 SF
  • Industrial: 66 Properties = 18,563,436 SF
  • Retail: 56 Properties = 1,322,837 SF
  • Multifamily: 68 Properties = 10,576 Units


Data Sources: CoStar & Cawley Commercial Real Estate



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