Chicago a Top 5 Performer in Retail Investment Sales

A recent study from CBRE Research and Real Capital Analytics reports that Chicago is a strong performer for retail investment sales, placing in the top five U.S. markets for total transaction volume in 2015.

Year-to-date, Chicago has recorded $2.7 billion in sales, making it the fourth largest U.S. market for activity, behind New York City, Los Angeles and Miami. Retailinvestment1

“Chicago is very appealing to investors because it is a 24/7 city and has a phenomenal public transportation system, which stands out when compared to most other cities across the U.S.,” said Keely Polczynski, first vice president with CBRE.

Polczynski recently completed a deal in October at 59-65 East Oak Street in Chicago’s Gold Coast neighborhood. The property sold for $47.4 million, one of the largest retail investment deals of the year.

“Chicago also offers a very strong workforce and cap rates that are slightly higher than a few of the core costal markets. For these reasons, a lot of institutional and private funds have been targeting the Chicago market.”

Chicago’s performance is on par with the nationwide trend of increased sales, as overall U.S. retail investment sales are on pace for a record year with the projected range of $75 billion-to-$80 billion, surpassing the previous record set in 2014 of $74 billion.

Retailinvestment2

“We have seen a lot of institutional investors allocating money to alternative investments such as real estate,” said Polczynski. “Likewise, a lot of new private funds are forming to target urban real estate. In many cases, buyers are driving up the prices for well-located properties to the point where a lot of long-time owners are deciding to sell. It’s been a very robust market for retail investment.”

To read the entire report, please click here.

Polczynski Vantage Point

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