No Space?! It's a Good Thing

Retailers are leasing, but developers aren't adding supply, so the markets are approaching equilibrium, Mid-America Real Estate Group principal Dick Spinell tells us. He'll have more to say on the subject as a national panelist at Bisnow’s State of the Market on Oct. 4 at the Palmer House Hilton. (Sign up today!)
 
Both urban and suburban retail markets are coming back “with a vengeance,” Dick says. (It's possible he writes movie taglines in his spare time.) In the 25 years that Mid-America has tracked Chicagoland retail, 4.5M SF of new space has been delivered annually. Since ’07 though, there’s been about 1M SF each year, or as Dick puts it, virtually no new space, because single-tenant occupancy stores absorbed most of the new construction. The good news: rents are only about 10% off the ’07 peak, and he expects them to be only 5% off in ’13. During the worst of the Great Recession, rents fells as much as 50%.
 

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Chicago Newsletters
Related Stories

California Investor Scoops Up Amazon Warehouse: The Chicago Deal Sheet

How Crystal Lake 'Connects The Dots' To Building Complete Community

Downtown Atlanta Improvement Group Picks Food Bank Chief As Next Leader

Trump's DEI Crackdown Is Creating New Risks For Landlords That Lease To The Government

Brandon Johnson Seeks Second Term Amid Strained CRE Relationship

Prologis Acquires 69 Acres For 1M SF Chicago-Area Industrial Development

Former CBRE Exec Suing Brokerage Giant Over Age Discrimination, Whistleblower Complaint

D.C. Investor Behind The Stacks Swaps CEO For First Time In 25 Years

First LaSalle Street Reimagined Conversion Opens In Chicago's Loop

CBRE IM Buys Net Lease REIT For $1.6B, Plans More Investment

The Difference Between Service And Hospitality That Makes A Flexible Workspace A Success

Beyond The Boom: How Miami's CRE Market Continues To Be Resilient