Is the latest Chicago suburban real estate upswing a sign of long-term recovery, or another case of location-prime suburbs taking a step forward while those out of proximity fall behind?
Bisnow’s Chuck Sudo paraphrased statements from Hamilton Partners’ Mike Rolf and NAI Hiffman executive vice president Michael Flynn that addressed the matter in a recent article.
Here are the important takeaways:
Rolf asserted that Caterpillar’s global HQ relocation to Deerfield’s Corporate 500 Centre exemplifies recent suburban real estate boom. However, he acknowledged that despite single digit vacancy rates in Class-A assets in the first quarter of this year, Class-B and Class-C properties contain most of the vacancies. Flynn also expressed concern with Class-B and Class-C suburban office properties. In buildings where upgrades have not been made, tenants continue to hang onto low rents, making it challenging for the building to afford renovations.
In terms of location, Flynn stated suburban areas away from public transportation hubs and expressways, such as west of Milwaukee Avenue near Lincolnshire and Vernon Hills, have been harder to fill. On the contrary, suburbs bordering O’Hare airport, the East-West Corridor east of Downers Grove, and I-294 from Lake Cook Road up north to Route 60 continue to remain the strongest submarkets.
What this means to a Bespoke client
As your strategic partner, we negotiate deals that are dedicated solely to your success—we ask the right questions pertaining to your business and always factor in the current market condition and where it’s headed. This intel coupled with our extensive network allows us to uncover the ideal space and location that work for you today and can adapt for your future goals.
Interested in relocating to the suburban market? Request a custom space fitting today to see how Bespoke can help you find the right fit for your business.