Suburban Growth in the Covid-Era

The Chicago suburbs experienced an influx in real estate activity due to the Covid pandemic.  While companies transitioned employees to virtual, city dwellers decided it was time for more space and sought homes throughout the greater suburban market.  Homeowners aren’t the only ones seeking more land, recently the Chicago Bears inked a deal to purchase the Arlington International Racecourse which sits on 326 acres.  In an article by Bisnow, the title says it all, “The Chicago Bears Have a Suburban Vision and Experts Say There’s Enough Demand to Make It Happen.”  So what does this suburban growth mean for businesses?

In short.  Opportunity.

It’s no surprise that with an increase in population, there is an increase in overall living needs.  From restaurants to grocers, doctors to outpatient centers, we expect to see suburban vacancy numbers decrease from where they topped at the height of the pandemic.  Our firm has already seen this demand in the medical sector, as we’ve had a record-breaking year in terms of closed medical transactions.  In fact, many of our medical office buildings are closing in on 100% occupancy as both new tenants move in and existing tenants renew their leases.

Furthermore, we’re seeing demand for industrial space increase as the world continues to embrace the pandemic-driven e-commerce movement.  Earlier in 2021, we assisted in the sale of Pheasant Run Golf Course to an industrial developer.  Greco/DeRosa Investment Group has plans for numerous industrial buildings on the +/-90 acres.

Outside our firm, the suburbs experienced the first profitable office flip in the “Covid-Era.”  According to Crain’s Chicago Business, “Helios Properties paid $12.6 million last month for the 173,017-square-foot building at 814 Commerce Drive in Oak Brook, according to DuPage County property records.” The three-story building was bought in December 2019 for $8.4 million. The article continues to explain there is an appetite for well-located office buildings regardless of the pandemic.  “Office buildings around the mall have been popular among tenants that see the shopping center as an extra amenity,” says Crain’s.

For nearly 20 years our firm has provided commercial real estate services throughout the Chicagoland area, with a majority being in the suburbs.  Members of our firm reside in the suburbs and know the market.  Whether you’re looking for office, medical, industrial, or retail space, allow us to be your expert and negotiate the best deal for your business.

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