Chicago real estate commerical
Chicago has been recognized as one of the leading metropolitan cities in the world for many years. The sphere of its commercial influence extends to all the major international business centers around the world. Its financial and cultural influence in the United States is also well established. It is the largest city in the Midwest state of Illinois and the third largest in the country. The population stands at around 3 million. The whole Chicago Metropolitan Area, also known as Chicago-land, is the third largest in the United States with a population of nearly 10 million people. Its strategic location on the south western shore of Lake Michigan is one of the major reasons for the rapid growth and development of the city. The civic infrastructure is well developed. Transportation is well organized.
Chicago Commercial Real Estate
In spite of several positive indicators, rising interest rates are pushing down real estate values in Chicago and this impact is evident in the commercial segment also. This segment saw a rise of over 10% in 2006 involving an amount of over 300 million dollars. Office blocks attracted the highest attention. Analysts have noted that commercial holdings to the value of about $70 billion have been traded in the first part of the year. Interest in office space is still very strong. Investors have shown a marked preference for commercial real estate in New York, Los Angeles, Boston and Chicago. Expectations expressed at the National Association of Realtors ? Midyear Legislative Meetings & Trade Expo indicate that fundamentals appear to be shoring up and a favorable interest rate will attract more investors. Many institutions are still interested in commercial investments in Chicago. Builders in Chicago have started taking innovative steps too market commercial properties. Constructing according to the needs of the user is a common approach. Many builders design the premises to accommodate a ?lead tenant? or an ?anchor? to attract smaller buyers or tenants.
But all these measures may not have immediate or considerable effect on the general downward trend. High interest rates and rising construction costs make returns on borrowed money unattractive. According to one of the leading commercial real estate agencies in Chicago, Jones Lang LaSalle, the rate of increase in property prices has almost come to a standstill, and transactions have to be negotiated over a lengthy period before being concluded. However many realtors believe the residential segment will be the main loser at the expense of the commercial segment.
Localities and Rates
Commercial properties are located all over Chicago and the main real estate activity involves rental of office and shopping space. Sale of commercial properties (new and old) also takes place, especially when institutional buyers are looking for office and retail space. Rents and sale prices will vary according to the location of the plot or building. The type of construction, the facilities available and age of the premises will also influence the rates. The average sales price has been around $250/sq.ft. Rentals vary from around $15 to about $35 per square foot.
Whether it is for rent or for outright purchase, using the services of a reputed real estate agent is strongly recommended. There are many of them in and around the city of Chicago. Some of the more well known among them are: CB Richard Ellis Inc. , Eastdil Secured LLC , Colliers Bennett & Kahnweiler Inc. , Jones Lang LaSalle Inc. , and Mid-America Real Estate Corp. Most realtors will also provide assistance regarding finance, mortgages, insurance, legal matters, appraisal, etc. Even though the general Chicago real estate scenario doesn ?t look too good at the moment, there is little doubt that the demand for office space is still very high.
Other Articles
