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- RCA’s Commercial Property Price Index said the below sectors had the strongest YOY price increase as of August
- • Suburban Office: +14.8%
- • Apartment: +14.7%
- • Industrial: +13.6%
- Elevated prices for Multifamily and Industrial is unsurprising – Both registered strong rent growth & falling vacancy
- Meanwhile, Suburban Office prices are driven more by the future outlook than current fundamentals
- As Millennials age, many investors are betting the cohort will start families and move to the suburbs much like previous generations
- As a result, employers could begin to shift office operations out of the CBD and into surrounding areas where their workforce is relocating, strengthening office space demand
- Investors are positioning assets in the path of this growth, hoping to capitalize on the trend
Chicago Multifamily Research
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