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Commercial property values in Chicago surpass pre-recession peak
Despite the strong first-quarter showing, sellers are having a hard time finding buyers
Commercial property investors in the Chicago area have reason to be optimistic, as property values are on the rise again.
An index from Real Capital Analytics showed first-quarter commercial property values rose 5 percent year over year, and are now 2.5 percent higher than their pre-recession peak in 2007, according to Crain’s.
Nationally, first-quarter commercial property values rose 5.7 percent year over year, according to RCA. But the Chicago area still lags behind some other metros because of greater supply and a less dynamic economy to attract more investors, RCA’s Jim Costello told Crain’s.
Chicago property owners are looking to cash in on the rising values, with at least 22 Downtown office buildings hitting the market since January.
But sellers so far aren’t having a lot of luck finding buyers: RCA data showed commercial property sales in the Chicago area totaled $3.9 billion through April, down 44 percent from the same period in 2018 and the lowest mark through the first four months of the year since 2014, according to Crain’s. [Crain’s] — John O’Brien