January 2013

Year-End Market Review & 2013 Forecast

 Year-End Market Review & 2013 Forecast
NAI Hiffman is pleased to present its year-end Market Reveiw & 2013 Forecast, 80 full-color pages detailing:
  • Up-to-date statistics
  • Current trends
  • Significant transactions
  • Hundreds of graphs
  • Informative narrative
  • The 2013 outlook for the Chicago Metropolitan office, industrial, retail and investment real estate markets.
Download the full market review
Office Market Review
Conditions continued to improve throughout the suburban office market during 2012. Over the course of the year, the vacancy rate dropped by nearly 1.5%, as 2.37 million SF of vacant space was absorbed through transaction activity and expansions. Despite news of large tenants leaving the suburbs and moving to downtown Chicago to take advantage of a younger work force, for the first time in several years, more vacant space was absorbed among suburban office buildings than downtown.The past year witnessed the absorption of 1.6 million SF of vacant space among downtown buildings. While 2011 saw nearly 2.6 million SF absorbed, this year’s tally was enough to push the area’s vacancy rate down about 1.2% from the rate a year ago. The year ended with a vacancy rate of 13.47%, a rate 7.1% below the suburbs and more than 3.5% below the peak rate recorded in 2010. Learn more…
Industrial Market Review
Over the course of 2012, demand continued to pick up for industrial space, as more than 14.6 million SF of vacant space was absorbed through new leases, lease expansions and user sales. This value is the most demand the market has seen in five years, indicative of how far we’ve come. Since the market turned around during the second half of 2010, nearly 33 million SF has been absorbed, dropping the vacancy rate from its 12.1% high to 9.2% by the end of the year – a rate similar to pre-recession levels.
In response to the easing of vacancy concerns among developers, construction continues to pick up market-wide. Just over 5.9 million SF is under construction, the most new development the area has seen since 2008. Learn more…

Retail Market Review

The retail market experienced a slight decline in market conditions in the fourth quarter of 2012, while the vacancy rate increased, ending the year at 11%.Average asking rental rates in the retail market area are down over previous quarter levels and also down from the levels recorded a year ago. Learn more…

Investment Market Review

The market is described by some as bifurcated and others as trifurcated. We are in the trifurcated camp: the best, the distressed, and the rest. Sales volume has largely been driven by core assets in first tier markets; lender controlled distressed assets and multi-family. Learn more…

For further information regarding the content of these market reviews, please contact:

Craig Hurvitz | Director of Statistics and Market Information
630 693 0645

If you are interested in attending a custom market overview presentation, please contact:

John Picchiotti | COO, Brokerage
630 691 0608

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