A double-edge sword is cutting through the commercial and multifamily property sectors: rising costs and softening demand. While many sectors such as lodging, industrial and office properties are within a healthy supply-and-demand balance, residential and some retail properties are overshadowed with too much product online. All property types are plagued by outrageous construction cost increases.
The Fed raised rates all year and stopped its’ consecutive climb in mid-August. The bond market reacted favorably by lowering yield premiums as treasury debt is viewed as more stable. The net result favors borrowers as the cost of funds are declining.
While residential housing markets throughout the country are pausing, commercial real estate activity remains brisk. In particular, office properties are re-emerging as a financing product of choice.
The Real Estate Capital Institute recently announced plans to relocate to the Original Sears Tower located at 900 S. Homan Avenue within the rapidly redeveloping North Lawndale neighborhood on the city's Westside. The Institute is currently located at 3517 West Arthington Street, just west of the Tower.
The Real Estate Capital Institute announces the nation's first realty capital interest rate broadcast service. The automated service provides hourly market information. Known as The Real Estate Capital Rateline, a phone call will track key interest rates (e.g., LIBOR, Treasuries).
Chicago enjoys the rebirth of residential development in the core areas near downtown. The unprecedented housing boom creates exciting, world-class, urban living linked to various amenities.
Although the University and the Medical District are the most visible employment/research nodes on the West Side, the talent pool is expanding further west to North Lawndale. In particular, the heart of North Lawndale is the former Sears Roebuck & Co. Catalog Plant headquarters (www.originaltower.com) at the intersection of Homan Avenue and Arthington streets. Now known as Homan Square (www.homansquare.org), the area encompasses about 40 acres situated about 10 minutes west of the Loop.
Yesterday's Fed announcement to hold rates at bay is a sigh of relief for borrowers punished by 17 rate hikes over the past two years.
Chicago's Historic Sears Catalog Plant Museum Announced