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

Deal volume marks 11-year high

Nov.November 26, 2018 03:00 PM

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

Related Articles

1035-1065 N Orleans St (Credit: Google Maps)

Developers place bets on another downtown hotel

2537 North Pulaski Road in Logan Square (Credit: Google Maps)

‘Hipster’ concert venue will cause gentrification, Logan Square activists claim

Former NFL player Israel Idonije and 200 W. Madison St. (Credit: Getty Images, Google Maps)

Former Chicago Bear launches 1871-styled incubator with insane lease rates

Sterling Bay’s Andy Gloor and renderings of 333 North Green Street (Credit: Sterling Bay)

Sterling Bay’s new Fulton Market HQ is a Sterling Bay construction

Eddie Lampert and the two closing Sears locations at 5000 Spring Hill Mall (top) and 2200 W War Memorial Drive (Credit: Getty Images, Google Maps)

Where have all the Sears stores gone? Illinois is now down to a handful

226 West Jackson Boulevard; CEO John Mangel of Phoenix Development

Phoenix Development lands $91M construction loan for Hilton project

1000 and 1100 E. Warrenville Road (Credit: iStock)

This developer is willing to take a loss on a Naperville office complex

Acadia Realty Trust CEO Kenneth Bernstein and 849 (right) and 912 W. Armitage Avenue in Chicago’s North Side (Credit: VHT Studios and ICSC)

Acadia Realty Trust is obsessed with this Chicago shopping corridor