Industrial real estate sales drop in Chicago amid limited supply
After 23 transactions totaling $932 million in sales in the first quarter of 2022, the Chicago market saw a 58% drop in the first quarter of this year to 13 transactions totaling $392 million, according to a Q1 2023 investment market overview from the NAI Hiffman Industrial Capital Markets team.
At the same time, average price per square foot increased 28% from the $83.66 per square foot average reported in Q4 2022 to the $107.09 per square foot average in Q1 2023.
According to Pat Sullivan, executive vice president at NAI Hiffman, first-quarter investment sales slowed in part because buyers and sellers had different expectations about pricing amid rising interest rates and inflation concerns. Still, he said he expects industrial investments and transaction volume to increase as the year progresses as more product comes online.
About NAI Hiffman:
NAI Hiffman is one of the largest independent commercial real estate services firms in the Midwest, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, property management, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property solutions division, which provides property management, project services, and property accounting services across the country. NAI Hiffman | Hiffman National is an award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.
About Hiffman National:
Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally bestowed Top Workplace, and recognized CRE award winner, Hiffman National is headquartered in suburban Chicago, with more than 250 employees nationally and an additional six hub locations and 25 satellite offices across North America.