South Loop High Commercial Vacancy Rates Due to High Prices

April 3, 2009

Commercial

Sunset on the South Loop?

Sunset on the South Loop?

Between 1990 and 2000, according to the census, the South Loop’s population increased by 39 percent?the third largest neighborhood population increase in Chicago for that 10 year period. That the area’s growth and popularity had grown was obvious and apparent in both housing costs and real estate values. Growth continued and rates rose due to the popularity of the South Loop neighborhood.

What has changed since the population increase are the types and sizes of businesses that were able to survive the drastic increase in rents. For businesses whose lease was signed before the population increase, retail rents were a bargain.

Many Changes in the South Loop

However, in today’s lean times, the rates charged for commercial space in the South Loop seem to be artificially high. The vacancy rate for retail and commercial space in the South Loop reflects what is happening in the downtown CBD, as reported in the major Chicago newspapers over the past few days. The retail in the South Loop market continues to have a high vacancy rate due to asking prices.

Hopefully as potential retailers decide to take advantage of the South Loop, landlords will be more realistic with their asking prices and the South Loop will continue to grow.

We’d like to thank Joe M500 for so generously sharing this post’s photo via the Creative Common’s License. Thank you Joe!

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About Phil Burnstine

Phil is a life-long resident of Chicago with over 20 years of award-winning commercial and residential real estate experience. He is well versed in the comings and goings of the city and active in the arts community. Trustworthy and a natural salesman at heart, he has an innate ability to make others feel at ease while, at the same time, he gets the deal done. I am especially adept at working with first time buyers who are ill at ease with getting into the market. There are so many ins and outs with the real estate market today, that it takes someone who knows the areas and financing innuendos. Phil recently joined Chicago Property Services and concentrates on helping associations become more efficient with professional management services throughout the city of Chicago. He started in the commercial real estate arena in 1986 in the River North area in Chicago and became the fifth ranked agent in the North Side Real Estate Board which is now CAR. He will still make real estate deals in the residential and commercial community as well.

View all posts by Phil Burnstine

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