eXp Commercial | Chicago Multifamily Brokerage

Wednesday, July 9, 2025

🏢 Two Adjacent Turnkey Office Buildings For Sale – Joliet, IL 🏢
Located just off Larkin Ave and adjacent to Ascension St. Joseph Medical Center, these two well-maintained office buildings offer flexible layouts, optional furnishings, and strong owner-user or investment potential.

📍 2435 & 2439 Glenwood Ave | Joliet, IL

🔹 2435 Glenwood: ±10,311 SF | $1,295,000
🔹 2439 Glenwood: ±9,410 SF | $1,100,000
🔹 Total: ±19,721 SF | Offered Individually or Together
🔹 Delivered Vacant | Elevator Access in 2435
🔹 Recently Renovated | Fully Furnished Option
🔹 Ideal for Medical, Office, or Professional Use

📂 View Full Listings & OMs:
➡️ 2435 Glenwood: https://creconsult.net/office-building-for-sale-joliet
➡️ 2439 Glenwood: https://creconsult.net/2439-glenwood-office-sale-joliet

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Listed exclusively by:
Randolph Taylor, CCIM
Vice President | Broker – eXp Commercial
📧 rtaylor@creconsult.net
📱 (630) 474-6441
🌐 https://creconsult.net

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#OfficeForSale \#JolietIL #CommercialRealEstate #TurnkeyOffice #CRE #MedicalOffice #OwnerUserOpportunity #ProfessionalOffice #OfficeBuildings #CREBroker #RandolphTaylor

Wednesday, July 2, 2025

Chicago Multifamily Cap Rate Map: What Drives Investment Value

Understanding the Chicago multifamily cap rate landscape is essential for investment decisions in 2025. This thematic map offers more than just a visual of pricing — it reveals operational risk, submarket fundamentals, and asset class volatility that drive investor returns and pricing behavior.

Multifamily cap rates are uniquely complex. Unlike single-tenant net lease properties, where cap rates reflect tenant credit quality and lease duration, multifamily pricing is shaped by a dynamic mix of local economics, operational burdens, and tenant behavior.

Why Multifamily Cap Rates Behave Differently

Multifamily assets are short-term lease products with intensive operating models. Cap rates are influenced by:

Tenant churn and leasing friction

Market-specific demand volatility

Local policy factors (rent control, permitting)

Asset condition and cap-ex requirements

Class segmentation (Class A vs. B/C)

These factors result in cap rate spreads that reflect true income risk — not just credit quality. Net leased properties trade with narrow spreads because of credit-backed income streams, while multifamily spreads widen significantly due to greater unpredictability in NOI.

Read: Cap Rate Spreads: Understanding Multifamily Risk Premiums

2025 Trends in the Chicago Multifamily Cap Rate Market

Class A properties in neighborhoods like the Loop and North Lakefront trade in the mid-6% cap rate range, reflecting newer construction, institutional capital, and more predictable demand.

Class B/C stock in South and West Side submarkets often trades at 7.5–8.5%, pricing in turnover, deferred maintenance, and income fragility.

Citywide average: ~7.5%, though individual sales have ranged from 2.7% to over 20%, depending on property-level and locational risk.

Explore this in depth in the 2025 Multifamily Market Outlook

Interpreting the Cap Rate Map: Color as Risk and Opportunity

The map is not just a price guide — it’s a visual reflection of where investor risk premiums are most pronounced:

Green zones: Lower cap rates tied to stability, higher liquidity, and strong underlying demand

Red/orange zones: Higher cap rates due to rent stagnation, maintenance exposure, and affordability constraints

Class B/C assets in red zones may show low vacancy, but often have compressed rent potential and elevated cap-ex risk. Meanwhile, green zones often reflect stabilized assets with institutional appeal and longer-term appreciation upside.

Cap Rate Comparison: Multifamily vs. Net Lease

In net lease investments, cap rates respond to bond-like factors: credit ratings, lease term, and passive ownership. In contrast, multifamily cap rates are operationally intensive and respond to:

Rent collections and delinquencies

Turnover costs and resident churn

Capital expenditures

Micro-market volatility

As detailed in Cap Rate Spreads: Understanding Multifamily Risk Premiums, these layers of risk result in higher spreads — even in similar markets — making cap rates an expression of operational complexity rather than lease reliability.

For context on macro investment trends, see CBRE’s Multifamily Investment Outlook

Class A vs. B/C: Divergent Risk Profiles

Class A: Typically newer construction, higher-income tenant base, lower maintenance burden — and therefore tighter cap rates.

Class B/C: Older assets often require repositioning or increased management and capital, leading to higher cap rates but also potentially higher returns if well executed.

Interestingly, Class B/C properties have posted lower vacancy rates (~3%) than Class A (~8%) in recent quarters — due to affordability demand — but the true return calculus must factor in expenses, rent ceilings, and risk of turnover.

Investor Takeaways

Use cap rate maps as signals of risk, not just return.

Understand the operational burden behind higher yields — they may reflect friction, not opportunity.

Cap rate spreads reveal asset class truth — especially when comparing multifamily to credit-backed sectors.

Expect divergence by class and submarket — underwriting must be hyperlocal and asset-specific.

Cap rates are macro-sensitive — higher interest rates can tighten spreads and compress values fast.

Looking to position your asset for resale or value extraction? Start with our guide: Maximizing Your Multifamily Property’s Sale Potential

https://creconsult.net/chicago-multifamily-cap-rate-drivers/?fsp_sid=1152

Tuesday, July 1, 2025

Chicago Multifamily Mortgage Rates June 2025 | Market Update

Introduction: Tracking Chicago Multifamily Mortgage Rates in June 2025

Chicago multifamily mortgage rates have dropped across most products in June 2025. These movements directly impact refinancing, investment acquisition, and underwriting strategies in the city’s multifamily sector. In this post, we break down the numbers and help you act on them.

Multifamily Mortgage Rates – June 2025 Overview

Loan Type	5‑Year	7‑Year	10‑Year
Bank Loans	5.90% ▼ 0.10	6.21% ▼ 0.15	6.63% ▼ 0.12
Agency Loans	5.20% ▼ 0.11	5.26% ▼ 0.14	5.39% ▼ 0.12
Agency SBL	6.29% ▼ 0.10	6.29% ▼ 0.10	6.19% ▼ 0.15
CMBS Loans	7.10% ▼ 0.10	7.05% ▼ 0.10	6.75% ▼ 0.10

📌 Source: eXp Commercial Capital Markets

Why June 2025 Chicago Multifamily Rates Matter

With Chicago multifamily mortgage rates down this month, property owners and investors may want to reassess their lending strategies. Lower costs can open refinancing options, extend hold periods, or enable more aggressive acquisitions.

Key Lending Trends Impacting Chicago’s Market

1. Bank Loan Rates Provide Lower Entry

5‑Year rate: 5.90%, down from May.
Opportunity: Ideal for owners targeting short- to mid-term value.

2. Agency Loans Offer Stability

5‑Year rate: 5.20%, a notable decrease.
Best Use: Long-hold strategies for stabilized, higher-end assets.

3. Small Balance (SBL) Loans Trending Down

June 2025 multifamily SBL rates dropped 10 bps.
Use Case: Great fit for owners of smaller, workforce housing assets.

4. CMBS Remains Niche but Active

7-Year CMBS Rate: 7.05%
Strategic Use: Complex asset types, especially with portfolio-level financing.

Chicago Multifamily Investors: What to Do Now

Refinance if your current rate is over 6%.

Lock in loans before rates potentially rebound.

Partner with brokers who understand lending volatility and its effect on cap rates.

Chicago Multifamily Market Resilience

Despite rate fluctuations, Chicago’s fundamentals remain strong:

Demand for Class B and C properties is rising.

Submarkets like Bridgeport, Albany Park, and Bronzeville are attracting interest.

Broad employment base supports rental income stability.

Need Guidance on Chicago Multifamily Mortgage Rates?

With over two decades of experience, I help owners and investors navigate every rate shift with precision. From property valuation to debt strategy, I provide insights that maximize ROI.

📞 (630) 474‑6441
📧 rtaylor@creconsult.net
🌐 More multifamily insights

https://creconsult.net/?p=135668&fsp_sid=1118

Chicago Multifamily Market 2025: Rents & Cap Rates

The Chicago multifamily market remains one of the strongest in the country midway through 2025, with robust rent growth, competitive cap rates, and high investor interest. Despite broader economic uncertainty, Chicago continues to outperform many national peers due to its steady rental demand and limited new supply.

Tight Supply and Rising Rents in the Chicago Multifamily Market

Vacancy Rate: 4.7%, among the lowest in large U.S. metros

12-Month Rent Growth: 3.8%

Effective Rent Forecast for 2025: 5.3%

Average Asking Rent: $1,888/month or $1.60/SF

Absorption (12 Months): 10,153 units vs. 5,433 delivered

Units Under Construction: 8,286 (1.4% of inventory)

Chicago’s development slowdown, combined with population stability and international migration, continues to push asking rents higher across submarkets.

See our previous full-year analysis for comparison.

Aurora Submarket Insight: Suburban Value and Investment Stability

In suburban Aurora, IL, investment metrics show:

Effective Rent: $1.24/SF

Vacancy: 3.5%

Under Construction: 246 units (delivery expected Jan 2026)

Rent Growth (YoY): 3.4%

Recent Deals: Prices range from $77,000 to $190,000/unit depending on size and finish

Aurora’s affordability and low vacancy rates make it an attractive target for value-add multifamily investment.

Cap Rates, Price Per Unit, and Market Velocity

Sales Volume (Past 12 Months): $4.4 billion

Average Cap Rate: 6.2%

Price Per Unit: Typically ranges from $150,000–$275,000 in metro Chicago

Price Per SF: Averages $185–$325 depending on asset location and class

Although the transaction pace has eased from 2021 highs, Chicago’s multifamily investment market remains active, particularly in high-demand suburbs and core neighborhoods.

Multifamily Market Outlook: 2025–2026

With a historic slowdown in construction and continued population gains, rent growth is expected to accelerate. Submarkets with favorable fundamentals, like Aurora, Naperville, and Elgin, are poised to deliver higher returns for long-term investors.

Stay updated via CREConsult’s market insights and sign up for our monthly newsletter.

https://creconsult.net/?p=135678&fsp_sid=1135

Thursday, June 19, 2025

Commercial Real Estate Market Trends: 2025 Industry Insights

Introduction

In 2025, the real estate world looks different. Warehouses are booming, retail is rebounding, and suburban office spaces are outshining their urban counterparts. These changes are creating new opportunities—and challenges—for investors. In this article, we’ll break down the trends shaping today’s real estate market and what they mean for your next move.

Section 1: Commercial Real Estate Is Not One-Size-Fits-All

Smaller Deals Are Shaping the Market

Even though the headlines focus on billion-dollar buildings, most real estate deals today are much smaller. In fact, over 80% are under $10 million. These deals, often led by families or small firms, have a major impact on local markets.

Industrial Growth Is Leading the Way

Warehouses and storage facilities are in high demand. In places like Québec, rents could increase by up to 12% in 2025. This demand comes from the ongoing rise in e-commerce and the need for better supply chains (Colliers Forecast).

A Tale of Two Office Markets

Office buildings show a big divide. Older offices in city centers are seeing vacancy rates near 30%. On the other hand, suburban offices built after 2010 have rates closer to 11%. This shows how age and location now matter more than ever.

“Suburban offices built after 2010 are averaging about 11% in vacancy, compared to almost 30% for older downtown spaces.”

Section 2: Rates, Tariffs, and Market Uncertainty

Interest Rates Shake Up Values

Since 2022, interest rates have jumped up and down. That makes it tough to figure out how much a property is really worth. Buyers want lower prices, and sellers want yesterday’s rates. As a result, deals are slowing down.

Timing Is Everything

Even though there’s a pause now, lower mortgage rates are expected in 2025. That could make it easier to buy or sell. If you can wait out the current uncertainty, better conditions may be just around the corner.

Tariffs Add to the Pressure

Building costs are changing fast because of tariffs. Since these affect materials and labor, developers are putting projects on hold. That slowdown could keep supply tight in some markets, pushing up rents and values.

Section 3: Retail and Multifamily Stay Strong

The Retail Comeback Is Real

Retail is bouncing back—especially in local neighborhoods. Empty malls are being turned into gyms, health clinics, or delivery hubs. Since fewer new stores are opening, prime retail locations are seeing stable rents and low vacancies.

Renting Keeps Growing

Buying a home is tough right now. Prices are high, and interest rates are still a factor. Because of this, more people are choosing to rent. That’s good news for multifamily housing, which is seeing record demand in many cities.

Conclusion

The real estate market today is complex but full of opportunity. Smaller deals are becoming more common, and industrial spaces are seeing rapid growth. Offices are split between struggling downtown towers and thriving suburban buildings. Meanwhile, retail and rental housing continue to perform well.

Helpful Links

Learn more: CRE Investment Strategy Guide

Read next: Multifamily Market Insights

Data: Colliers 2025 Industrial Report

Rate trends: Federal Reserve Monetary Policy

https://creconsult.net/commercial-real-estate-market-2025/?fsp_sid=1035

Tuesday, June 17, 2025

Chicago rental market 2025: Why rents are soaring

Picture kicking off a morning jog along Lake Michigan, feeling the rising pulse of a metropolis in flux. Who could have guessed the Chicago rental market in 2025 would become one of the hottest in the nation, outpacing even our coastal cousins? In 2025, Windy City’s often-overlooked neighborhoods and skyscrapers alike are turning heads—and wallets—as demand surges, new construction slows, and investors scramble to get in on the action. If you think you know Chicago’s rental story, think again. Let’s peel back the layers behind the numbers, quirks, and untold stories shaping this city’s rental renaissance.

Population Surges and Surprises in the Chicago Rental Market 2025

Chicago’s apartment market is experiencing a remarkable shift, driven by a surge in population and a changing renter profile. Over the last two years, the city welcomed more than 100,000 new residents. This influx has supercharged housing demand and put significant pressure on the Chicago apartment market, leading to some of the lowest vacancy rates the city has seen in years.

What’s fueling this boom? A closer look reveals that many of these newcomers are younger professionals and remote workers. The Chicago rental market in 2025 benefits from the city’s relative affordability, especially compared to coastal cities. For those priced out of New York or San Francisco, the Windy City offers a compelling mix of urban amenities and manageable rent.

The impact on the rental market has been immediate and dramatic. In the six months leading up to the first quarter of 2025, net absorption exceeded 7,300 units—outpacing the number of new apartments delivered during the same period. This rapid uptake has left many would-be renters scrambling. In fact, it’s not uncommon to hear stories of renters being outbid on multiple apartments, even in neighborhoods that once favored tenants. Edgewater, for example, has seen fierce competition.

Across the city, vacancy rates are dropping sharply. Of Chicago’s 20 tracked submarkets, 10 posted triple-digit basis-point declines in vacancy over the past year. Hotspots like Aurora, the Far Northwest, and the Loop-West Loop-Fulton Market are seeing especially tight conditions.

Both Class A apartments and Class C apartments are benefiting from this demand surge. Class A vacancy fell by 110 basis points to 5.0%, while Class C vacancy dropped to just 3.2%—the lowest among major Midwest markets. Rent growth is robust across the board, with Class A properties seeing a 6.8% increase and Class C properties up 4.4%.

What’s more, the supply pipeline is tightening. With only 4,200 new units expected to come online in 2025—a nearly 50% drop from the decade average—competition for available apartments in the Chicago rental market in 2025 is likely to intensify. This limited supply, combined with strong demand, is expected to keep vacancy rates low and rents on an upward trajectory throughout the year.

Rent Growth & Competitive Leasing in the Chicago Rental Market 2025

Chicago’s rental market is making headlines for all the right reasons. In 2025, the city is leading the nation in rent growth, outpacing traditional hotspots like New York and Los Angeles. The average effective rent in Chicago jumped by 5.5% year-over-year, a figure that stands out among major U.S. metros.

This growth spans all segments of the Chicago rental market in 2025. Class A rents climbed 6.8%, while Class C apartments posted a 4.4% increase. Even Schaumburg saw its average rent rise by 7.6%, and suburbs like South Cook County posted gains as well. The citywide average effective rent is projected to reach $2,160 per month this year.

Construction Slowdown & the Chicago Investment Shift

Chicago’s multifamily market is entering a new era in 2025, shaped by a dramatic construction slowdown and a surge in local investment. According to recent supply forecasts, only 4,200 new apartment units are expected this year—about 50% below the city’s average over the past decade. This lack of new supply is reshaping the Chicago rental market in 2025.

As demand remains strong, local investors are targeting affordable, smaller properties in peripheral submarkets. Class C walk-ups on Chicago’s South Side are seeing increased activity thanks to high yields and relative affordability.

Rent Control Uncertainty in the Chicago Rental Market 2025

While rents climb at a record pace, the threat of rent control remains a wild card. Though currently prohibited in Illinois, rising costs are sparking renewed calls for regulation. Investors and residents alike are keeping an eye on how policy shifts could affect the Chicago rental market in 2025.

Sources: National Multifamily Housing Council, City of Chicago Housing Department

https://creconsult.net/chicago-rental-market-2025/?fsp_sid=1019

Friday, June 13, 2025

U.S. Apartment Market Rebound: Surprising Hotspots 2025

The 2025 U.S. Apartment Market Rebound: What’s Fueling the Recovery

The U.S. apartment market rebound in 2025 is more regionalized than ever. While housing affordability remains a national issue, rental demand is growing in specific metros, fueled by job growth, migration, and shifting renter preferences. Florida, the West Coast, and the Midwest are emerging as clear leaders—each for very different reasons.

See how these trends began in our 2024 housing analysis and what’s different now.

Florida's Apartment Market Rebound: Growth Fueled by Migration

The Florida apartment market rebound is one of the clearest signs of the broader U.S. recovery. Jacksonville, Tampa, and Orlando have experienced double-digit demand increases, driven by a combination of job creation and population growth. According to CoStar, these cities top the national momentum rankings for multifamily performance.

Jacksonville’s population grew by 9% between 2020 and 2024. Tampa’s rent growth outperformed national averages even as thousands of new units entered the market. These trends reflect a broader shift toward affordability and lifestyle-driven relocation across the Southeast.

Need more context? Visit our Florida rental market tracker.

Tech-Driven Rebound on the West Coast Rental Market

The West Coast apartment rebound in 2025 is gaining speed. San Francisco, San Jose, and Seattle are reversing prior declines thanks to renewed tech hiring and a return to urban living. San Francisco’s rent growth ranks first nationally, while San Jose has seen the strongest leasing uptick in over five years.

According to CBRE, AI and biotech firms are expanding in California, leasing office space and drawing talent back downtown. In Seattle, a constrained development pipeline has preserved rent gains, despite slow initial recovery post-COVID.

Explore more in our West Coast multifamily market review.

Midwest Rental Markets Join the U.S. Apartment Market Rebound

The Midwest apartment market rebound is a quiet but powerful trend in 2025. Chicago and Minneapolis are outperforming expectations with high occupancy and controlled rent increases. Chicago ranks top 10 for both rent growth and vacancy tightening, proving its ability to digest new supply.

Minneapolis continues to benefit from a favorable rent-to-income ratio, which has helped maintain strong affordability and high demand. The city’s restrained new construction approach is supporting a landlord-friendly environment while keeping renters’ costs stable.

Want more regional analysis? Check out our Midwest housing outlook.

Corporate Relocations & Supply Decline Shape the 2025 Multifamily Market

A major driver of the U.S. apartment market rebound is corporate relocation. Atlanta, Raleigh, and Charlotte are among cities attracting Fortune 500 headquarters, increasing rental demand and strengthening absorption.

Simultaneously, multifamily construction has slowed sharply. The National Multifamily Housing Council forecasts a 48% drop in new completions in 2025. This tightening supply will likely stabilize or boost rent prices as demand continues to outpace deliveries.

Final Thoughts on the U.S. Apartment Market Rebound

The U.S. apartment market rebound is multifaceted. Florida shows how population growth fuels demand. The West Coast demonstrates tech’s power to reenergize housing. And the Midwest proves affordability remains a major competitive edge. As corporate relocations and supply slowdowns shape what’s next, watching these regional patterns is essential for investors and renters alike.

https://creconsult.net/us-apartment-market-rebound/?fsp_sid=1003