Chicago rents have historically been resistant through a recession
Chicago’s commercial real estate climate remained the most unphased, while other cities tend to be more cyclical
December 18, 2019
- The chart above illustrates the relative resistance of each notable city against a recession by comparing Class A office pre-recession and otherwise healthy Q2 2007 Net rents versus mid-recession Q4 2009 rents. Chicago’s commercial real estate climate remained the most unphased, while other cities tend to be more cyclical and more susceptible to change in economics, particularly coastal cities.
- This serves as an important note for owners and investors of Chicago real estate, as many national economists are predicting a recession some time in late 2020 to mid-2021. Despite the negative press that has surrounded the city, paired with local government uncertainty, the health of net rental rates have historically remained unchanged throughout one of the worst recession the country has experienced.
- A welcomed signal for investors as they can use this data as proof for further investment in Chicago’s office market, despite apprehension nationally.
Source: JLL Research