State of the Chicago Multifamily Market: Spring 2014 Rental Update
It’s time for the Luxury Living Chicago spring multifamily update.
First lets discuss some themes across the board:
At the end of March, the last of the deals were rented. April has brought about higher pricing and limited availability in the stabilized rental buildings (buildings built 2009-2012). These properties are renting units about 30-45 days out. These buildings can only accommodate an immediate renter, versus someone who is planning a summer move.
Buildings still in lease up from last year have availability for now through June, but pricing is very high. This is because mostly higher floors and premium units are still available. Two bedrooms in these buildings start in the mid-$3000’s.
We are anticipating lease up specials in the new buildings delivering in the next few months, but only one property has officially begun pre-leasing, 73 East Lake in the Loop. This is one of the only properties on the market that is currently offering two months free to jump start leasing. Two bedrooms units at this brand new luxury building are in the low-$3000’s. Junior one bedrooms with a full sliding door and space for a king size bed are priced just above $2000.
Many of our clients ask us about condo rentals. With the resurgence in the downtown Chicago sale market, especially in River North and West Loop, the private condo rental options are few and far between. The condos that are available are priced in line with the rental options because they can command a higher price.
Also important to note, is there has been no new condo development in the last four years. While perception remains that condos are nicer than rental buildings, the newly built rental options blow condos out of the water with finishes and amenities.
New Construction 2014:
Last year saw six new properties open during the spring and summer adding 2700 apartments to the Chicago market. The average building size was about 450 units. This year’s crop of new luxury Chicago rentals will not feature as many units and are not as centrally located as last year’s offerings.
In addition, extreme winter weather has delayed openings. Most of this year’s properties will open in July. What this means to the Chicago renter is that if you want to move to a brand new property this summer, you should start looking soon.
Something very exciting about the new properties are the incredible and over the top amenities the buildings will feature. Multiple fitness centers, indoor heated dog runs, private dining options, Vegas-style pools. Everything is grandiose and technology driven. This is all in an attempt to create a sense of community and encourage resident retention.
As always, we are very excited for the busy Chicago leasing season. We have grown our team to accommodate the demand for downtown Chicago apartments. We are ready to provide the best quality service for those looking for a luxury Chicago apartment this spring and summer.
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