chicago-condos Dave on 29 Jan 2008 06:56 pm

Retail vacancy rates on the rise around Chicago

Condo sales aren’t the only worry for developers these days.  After several years of strong interest in new retail space, developers of Chicago Condos are now facing the specter of vacant space.  As the economy experiences what some are calling a recession, many Chicago area retailers are pulling back from plans for expansion, leaving many spaces vacant.

According to a report from real estate firm CB Richard Ellis Inc, the vacancy rate rose from 7.84 percent to 7.89 percent during the third quarter.  However, the annual increase was much higher, rising from 7.21 percent.

Rents were also up during the period, according to the report.  The average asking rent in the Chicago region hit $23.39, the highest level since 2004.

Some major leases have been signed in recent months, particularly around the Chicago suburbs.  However, until companies can measure the damage done by a recession in the economy, the vacancy rate for retail space on the Chicago real estate market could continue to rise.

However, as the number of mixed use developments coming on the market falls, the vacancy rate may level off over the next few months.

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