EUBA 2015 Multi-Family Real Estate Forecast

The Edgewater Uptown Builder’s Association (EUBA) presented its 2015 Multi-Family Real Estate Forecast on January 21st at the Chicago Apartment Finders office at 1114 W Bryn Mawr. Alderman James Cappleman spoke early on development in Ward 46 followed by a panel featuring Chris Irwin of Jameson Commercial, Matt Jones of Kiser Group, Jordan Gottlieb of Essex Realty Group, and Andy Ahitow of Chicago Apartment Finders. Chris Irwin kicked off the topic of what to expect in 2015 with the increase of fast-casual, Chipotle-style concepts: “We’re going to see a lot more service retail-type uses as opposed to soft goods.” Pointing to the surrounding commercial strip along Bryn Mawr, he added, “this is a microcosm of what you’re going to see in retail: a gym, a Dunkin Donuts, a Starbucks, you’ve got a lot of things giving you some sort of a service.”

• Vacancy rates have stabilized (7%/5-year average 6.5%)
• Rental rates slightly down; apartments rents have gone up so landlords seem willing to shave a dollar or two off per square foot to get a space occupied

Matt Jones said Uptown/Edgewater saw average sales prices up, over $100,000 per unit in 2014 and he expects to see a lot more in 2015 in terms of average sale price. Jordan Gottlieb echoed the sentiment with a year by year comparison of Uptown/Edgewater sales (mixed use and multifamily, $1 million+, 10+ units):

• 2006 – 31 sales – average $/unit $112000
• 2010 – 2 sales – average $/unit $59000
• 2011 -15 sales  – average $/unit $57000
• 2012 – 10 sales  – average $/unit $89000
• 2013 – 25 sales – average $/unit $78000
• 2014 – only 10 sales but average $/unit $105000

Further, Jordan believes Uptown/Edgewater will benefit in 2015 from 2 kinds of buyers: the out of state/out of country buyer and the 1031 exchange buyer. Andy Ahitow says 2014 was a great year for apartment leasing and expects the same for 2015.