Chicago Commercial Real Estate Suffers from Low Sales Numbers
What’s wrong in Chicagoland?
Single-property commercial sales in the Chicago dropped significantly in the first three quarters of 2019. Sales were down 33% from the same period in 2018, according to New York-based research firm Real Capital Analytics (RCA). It was the biggest drop among the top 25 U.S. markets, and much larger than the 6% decline for the nation overall.
“There are great reasons to be in the Chicago market, but investors are clearly finding the market less attractive,” writes author Jim Costello, RCA senior vice president. “Is it unfunded pension liabilities in Illinois, uncompetitive labor markets, or high taxation driving the change in perceptions? Is it some combination of these and other factors pulling down the whole region?”
Many landlords believe the problem starts and ends with Cook County Assessor Fritz Kaegi, who has jacked up assessments on commercial properties in the county’s northern suburbs. They believe that this may lead to big property tax hikes, scaring away potential investors.
Read on HERE