June 30, 2020
For downtown Chicago apartment landlords, the three months since the coronavirus pandemic began spreading have been rough. However, Crain’s Chicago Business reported that it hasn’t been the catastrophe that some expected.
“It kind of looked like the car was headed off to the ditch,” Integra Realty Resources’ Ron DeVries told Crain’s. “We hit the brakes, and it looks like we’re not going to get into a big wreck.”
That being said, the average net rent at Class A downtown apartment buildings fell to $3.01 per square foot by mid-May, down 7.7% from first-quarter 2019, IRR said. That was the biggest quarterly drop since at least 2001.
Yet Crain’s reported that many apartment landlords have reason to feel lucky, especially compared with owners of local hotels and retail properties. With Gov. J.B. Pritzker’s reopening plan entering Phase 4, DeVries expects that apartment leasing will pick up as more people venture out.
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