Investors Bet on Chicago to Duplicate Gains
The Chicago office market’s long-awaited recovery has finally arrived as vacancies are declining and rents are increasing. Investors who snapped up buildings during the market’s downturn in 2004 and 2005 are now receiving premium prices for their properties. Of the 114 Chicago-area office properties that have traded this year, 20 were acquired when the market was at its weakest in 2005. Those were purchased for $728 million and have since re-traded for a total of $1.3 billion, representing an increase in value of 44%.

Manhattan Vacancy Rate Below 1%
The vacancy rate for Manhattan multifamily property dipped below 1% last year. According to Manhattan brokerage firm Citi Habitats, multifamily rents have soared from 2002 through 2006. Average rents increased 36% for units of three bedrooms or larger, 32% for two-bedroom units, 23% for one-bedroom units and 20% for studios. The highest-priced submarkets include SoHo, where the average rents are $2,228 for studios, $4,750 for two-bedroom units and $6,971 for three-bedroom units; and the West Village, where one-bedrooms rent for an average of $3,035.

Charlotte Leads Lowest Office Vacancy Rate
The Charlotte, N.C. downtown district recorded the lowest Q2 2007 office vacancy rate in the country, according to numbers compiled by CB Richard Ellis Group. The 3.08% vacancy rate was also the country’s lowest rate for the second consecutive quarter. Charlotte, which posted a 3.14 % rate in Q1 2007, finished ahead of Manhattan, which had a 4.8% vacancy rate.

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