A new index shows a 37 percent rise over the past two years, but prices are still well below pre-crash levels.
The rate ticked up in November because of one loan, but the broader downward trend over the past several months is another positive for the market.
Signed deals for local commercial and residential projects are up 15 percent over the first 10 months of last year, with residential and institution building showing the biggest increases.
Banks are selling off bad debt on local income-producing property, pushing down the Chicago-area rate to 6.0 percent in the third quarter.
The suburban rental market continues to rise even as the main driver of demand for apartments — the job market — remains sluggish.
But increases for Class A buildings are likely to subside next year, when nearly 2,700 new units are completed, with another 2,000 on tap for 2014.
The local market's rating rose for the third straight year in a ULI/PricewaterhouseCoopers report, but cities such as San Francisco and New York still hold more appeal.
And, "Based on the number of deals and active prospects in the market right now, we're going to see a strong fourth quarter,” one observer says.
“As landlords and owners, I'd say that we're starting to feel the recovery,” one exec says. But that isn't translating to significant rent increases.
(Crain's) — Such real estate companies are popular with many investors because they tend to pay high dividends, a big plus in the current market, where expected returns on many investments…
(Crain's) — Landlords in far-flung suburbs have struggled to attract tenants amid a broader shift in the market, drawing more companies to the city and inner suburbs.
(Crain's) — After falling for a year and a half, the rate remained the same as the previous quarter, as the big Google lease at the Mart won't show up in the numbers until next year.
(Crain's) — Employment in the local commercial property sector has fallen nearly 26 percent from its 2006 peak and isn't forecast to rise until 2014, according to Moody's.
(Crain's) — The property tax tab edged down this year to $24.3 million at the 110-story skyscraper. The top 10 in Cook County were eight office properties and two malls.
(Crain's) — A strong summer tourist season and pickup in business travel have boosted demand.
(Crain's) — The drop in the rate is a sign that more overdue borrowers are getting extensions on loans.
(Crain's) — Landlords continue to benefit from instability in the for-sale housing market even as the job market remains weak.
(Crain's) — Also, recent leasing strength is a good sign for a market bracing for a flood of new units in the next couple years, an observer says.
(Crain's) — The percentage of delinquent debt held by banks decreased to 6.2 percent in the second quarter as they continued to sell off bad notes.
(Crain's) — The picture is much different in the suburbs, where rents have risen only 1.5 percent in that six-year period.