2013 Leasing Season Round Up: Luxury Living Chicago Speaks to Chicago Tribune About New Apartment Buildings in Chicago
As the 2013 leasing season starts to wind down, I wanted to share my insights on what happened in the market this summer.
First and foremost, new, fresh inventory delivered starting in April with the arrival of Coast at Lakeshore East and K2. With these new buildings came a flurry of renters looking for brand new and they finally had options after two years of nearly no new apartments.
These early apartment seekers grabbed some fabulous units at great prices. Of course, the new buildings were offering incentives to lease up their properties quickly. Coast rented very quickly running out of two bedrooms by the middle of summer. Dog-friendly units went first with the gorgeous Lakeshore East park right outside their door.
On May 1st, 500 North Lake Shore Drive opened for leasing and Luxury Living Chicago was ready. These are the nicest and most upscale apartments Chicago has ever seen. Curt Bailey and the Related Midwest team did everything right. The level of service, the amenities and the units all resonated with high-end renters – most of whom would typically be condo buyers.
As the summer rolled on rents rose up. One bedrooms that were in the low $2000’s climbed to the mid-$2000’s and two bedrooms became scarce and when available, very expensive. With no new condos built this year, high end apartment buildings served as a nice replacement.
Then came AMLI River North the building in arguably the most prime location to open in years. Situated on the bustling Hubbard Street bar and restaurant scene this was the building current Chicago apartment renters were waiting to upgrade to. The property didn’t disappoint with incredible amenities and floor plans. However, prices are significantly higher than any other building in the city. You are certainly paying for location with one bedrooms nearing $3000 per month.
Optima in Streeterville kept a lower profile and is steadily renting with a sister building already in the works.
Hubbard Place is the last of the summer 2013 buildings to begin leasing. They will open for occupancy October 1st, but are currently pre-leasing from a sales center across the street showcasing a model kitchen, bathroom and other examples of the finishes you’ll find once completed. Hubbard Place promises to be another high end River North option with competitive pricing to kick-off its lease-up.
So what happened in the buildings that weren’t brand new?
We are seeing a definitive divide in the market between the newest luxury properties coming online this year and those built during the last wave between 2009-2011. The newest buildings are leasing faster than ever and prices are the highest Chicago has ever seen.
The market is very different in buildings built just a few years ago. Those properties were commanding the top market rents and had almost 100% occupancy earlier this summer. Now, they are trying to keep residents from jumping ship to the newest kid on the block. They are offering at least one month free concessions and prices are dropping as we move closer to winter. Renters are saying, “Why should I pay the same thing for a three year old building when I can get brand new at the same price?”
This all applies to the luxury real estate rental market, specifically downtown. To get a better understanding of what’s happening in the Chicago apartment market at large, read this Chicago Tribune story by Sharon Stangenes. I spoke with Sharon and shared my market knowledge for this particular story.
Luxury Living Chicago is a preferred partner for each of these new properties and has the most up to date pricing, availability and incentives for any of the downtown luxury Chicago apartment buildings and condos.
Contact us for assistance with your downtown Chicago apartment search.
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