Retail Fundamentals Hold Steady as Chicago’s Economy Continues to Recover
- Loosening restrictions aid retail demand. Chicago’s retail sector continues to recover following a temporary disruption caused by the pandemic.
- Limited pipeline supports demand for existing floor plans. The minimal amount of recent completions in Chicago has aided the metro’s fundamental balance.
- Sales activity in Chicago remained muted over the past four quarters, with transaction activity down 14 percent year over year and falling well below the metro average prior to the pandemic.
- The average sale price in single-tenant properties remained flat over the past 12 months at $416 per square foot.
- Uncertainty from the pandemic impacted deal flow in multi-tenant properties, falling over 30 percent over the last four quarters.
- Private investors seeking lower entry costs and higher yields were particularly active in the metro’s Indiana submarket.
* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics