Today is	Commercial real estate appraisals for Chicago Cook County and the Collar Counties of Illinois CommercialAppraiser.net The official web site of Peterson Appraisal Group, Ltd. 6035 N. Northwest Highway, Suite 200 Chicago, IL 60631 Phone:773/763-6750 Fax:773/763-6492 E-mail: PAG@CommercialAppraiser.net
	Appraisal Order Form Home Contact Us Client List Appraisers Services Downloads Search Engine Links Metacrawler Metasearch Links Web Site Map	METROPOLITAN CHICAGO RETAIL MARKET OVERVIEW With an inventory of 111,827,059 square-feet of shopping center space the Chicago region boasts one of the largest and most diversified retail markets in the nation. The overall vacancy rate in Chicago area shopping centers over 50,000 square-feet increased slightly at 3rd quarter, ending at 7.7%, up from 7.3% at 1st quarter. Still this represents a significant improvement from the peak 11.1% rate reported at the end of 2002. Since that time the region has experienced a steady pace of leasing activity. No new shopping centers were completed during the 3rd quarter; however some 6.6 million square-feet are currently under construction.
	Overviews Downtown Chicago Office Market Suburban Chicago Office Market Chicago Industrial Market Chicago Retail Market Chicago Self Storage Market	The following shows the region's inventory, vacancy and rental rate statistics according to data in the CB Richard Ellis, MarketView Chicago Retail, Third Quarter 2005: CHICAGO AREA RETAIL MARKET STATISTICS 3rd QUARTER 2005 Submarket Gross Building SF Vacancy Rate Under Construction SF Avg. Gross Asking Lease Rate Range $PSF Far Northwest Suburbs 10,121,246 4.5% 170,000 $19.58 to $22.40 Northwest Suburbs 14,373,894 9.3% 815,132 $19.28 to $21.95 Far North Suburbs 7,963,461 8.3% 0 $20.30 to $24.91 North Suburbs 9,023,947 6.3% 120,000 $22.97 to $25.30 Far West Suburbs 29,948,488 7.3% 250,000 $17.54 to $19.67 West Suburbs 7,442,298 5.2% 150,000 $20.55 to $22.94 City North 7,715,821 4.1% 531,000 $27.91 to $32.22 City South 4,484,017 6.6% 200,000 $21.14 to $24.09 Far Southwest Suburbs 7,828,614 7.6% 862,000 $20.38 to $22.79 Southwest Suburbs 7,952,703 6.3% 650,000 $18.96 to $20.89 South Suburbs 6,119,852 17.9% 475,900 $16.76 to $18.99 Kane County 8,852,718 11.0% 2,376,037 $17.87 to $21.32 TOTAL 111,827,059 7.7% 6,600,069 $19.35 to $22.14 Source: CBRE. MarketView Chicago Retail Third Quarter 2005 Due to its consistent rents retail is an attractive investment compared to the other commercial real estate sectors. Leasing and sales remain robust with casual theme restaurants, banks, drug store and specialty apparel shops are among the tenant groups expanding in the region. Many national chains view Chicago as a must location. Construction is especially strong in the urban fringe; however close-in suburbs are also actively courting prime retailers for in-fill locations in under served markets. Shopping center sales are brisk with buyers seeking well- located properties with good tenant mixes. Absorption and Vacancy Over 8.6 million square-feet was vacant at the end of the third quarter, a slight increase over the 8.5 million vacant square-feet registered at the same period in 2004. The Southwest and Far West submarkets enjoyed the most significant declines in overall vacancy, dropping to 6.28% and 7.3%, respectively. The Kane County submarket on the other hand jumped from 8.65% at second quarter to 11.04% at third quarter. Interest from national retailers to enter or expand in the Chicago area is becoming increasingly evident. In addition, banks and financial services tenants, along with specialty niche retailers, are among the more active smaller tenants further boosting demand. Lease Rates While the leasing market is vigorous, rents have yet to register much growth. The average net asking lease rate at 3rd quarter actually dropped slightly to $20.75, down from $20.81 at second quarter; but remains above last year's average net asking lease rate of $20.38. CB Richard Ellis reports that the Far North and North submarkets had the largest increases during the quarter, ending the quarter at $22.60 and $24.56, respectively. The average net asking lease rates fell in Northwest and City North submarkets to $20.41 and $30.07, respectively. Construction CB Richard Ellis reports that construction activity hit a new high at 3rd quarter with 34 centers totaling 6.6 million square-feet under construction. This includes the 466,546-square-foot Brookside Market Place in Tinley Park, the 175,900-square-foot Country Club Plaza in Country Club Hills and the 41-acre, target anchored, Popular Creek shopping center, located near Sears' headquarters. A 160,000-square-foot center in Frankfort anchored by Home Depot and Staples is scheduled to open in the 4th quarter.
		CommercialAppraiser.net The official web site of Peterson Appraisal Group, Ltd. 6035 N. Northwest Highway, Suite 200 Chicago, IL 60631 Phone:773/763-6750 Fax:773/763-6492 E-mail: PAG@CommercialAppraiser.net © 2007 Peterson Appraisal Group, Ltd.