According to a Commercial Real Estate Outlook for 2017 prepared by Deloitte, “The real estate industry is increasingly influenced by rapid technological advancements and significant demographic shifts, which include growing urbanization, longevity of Baby Boomers, and differentiated lifestyle patterns of Millennials.”
Moving forward in 2017, developers, builders, and investors are cautiously optimistic that the industry can continue to grow.
Over 3,800 new apartment units were delivered in downtown Chicago in 2016 with an expected 4,500 deliveries in 2017 and 4,200 in 2018. As the population of higher end, Class A apartment renters continues to shift in the Chicago Metro Area, 2017 will be a year to watch to see which neighborhoods are affected most by the new supply and how Class B apartments and the condo market will be affected. Read more.
Construction activity has really heated up in Chicago in 2016 with no slowdown in sight for 2017. According to Dodge Data & Analytics, residential construction spending in the Chicago Metro Area in September 2016 was $446 million which was a 72% increase year over year (lead nation). With 44 tower projects under way in December requiring 48 cranes, activity is expected to continue despite rising construction costs and banks pulling back from higher risk real estate lending. Read more.
After years of rising occupancies, downtown hoteliers had an off year in 2016. This year will bring a pickup in convention business but continued concern about overbuilding. Read more.
The suburban Chicago office market in 2016 experienced its first annual vacancy increase in six years, but rents were on the rise anyway as landlords showed confidence that they’ve put the post-recession crash behind them. Read more.
Stable growth, a focus on omnichannel and the continued evolution of e-commerce: those are the pillars of this year’s retail outlook. Read more.
If anything is sure about the retail industry it is that consumer tastes, technology, and business conditions change. As mall landlords settle into a new year, which promises to bring major changes, these trends will likely shape much of their short-term strategies for prosperity. Read more.
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