The Real Deal Chicago

Chicago area’s commercial real estate sales top $16B through Q3

Deal volume marks 11-year high
By John O’Brien | November 26, 2018 03:00PM

Chicago Skyline (Credit: iStock)

The Chicago area recorded some $16.3 billion in commercial real estate sales through September, its highest volume over that period since 2007.

The nine-month sales volume marked a 32 percent compared to the same time last year, and is approaching the market’s highest total since 2015’s $23.3 billion, according to Crain’s, which used data from Real Capital Analytics.

RCA attributed the surge in sales in part to several large corporate mergers that saw big property portfolios change hands, including Brookfield Property Partners’ takeover of GGP. Another factor is properties are inexpensive compared to pricier coastal markets.

Office sales are having a particularly good year, rising 78 percent year-over-year to almost $5.3 billion. That includes high-profile deals like Sterling Bay’s $510 million acquisition of the Groupon headquarters building at 600 West Chicago Avenue and $680 million deal for Prudential Plaza, along with Morningstar founder Joe Mansueto’s $255 million purchase of the Wrigley Building.

Industrial sector sales were robust as well, surging 48 percent year over year, to nearly $4.4 billion. [Crain’s]John O’Brien