“Investors with market knowledge and elevated risk tolerance are seeking value-add properties in the Northwest suburbs and O’Hare submarkets, where cap rates are in the low- to-mid-8 percent range,” says John Przybyla, regional manager of the Chicago Downtown office of Marcus & Millichap.
Following are some of the most significant aspects of the Chicago Office Research Report:
· Completions are expected to reach nearly 2.6 million square feet in 2008, adding 1.1 percent to inventory.
· Vacancy is forecast to end the year at 16.4 percent.
· Effective rents will gain 1.9 percent to $22.39 per square foot.
· Office-using employment growth in Lake and Kenosha counties has outpaced the rest of the metro with roughly 2,000 jobs added, a 1.9 percent increase.
For a copy of the complete Chicago Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
Press Contact: Stacey Corso