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4th Quarter 2013: Chicago Suburban #CRE #Retail Market Update | Commercial Main N State

As with each year the fourth quarter is retailer's biggest time of the year. In 2013, the average shopper spent $407.02 over the Thanksgiving weekend which was 3.9% less than in 2012 per the National Retail Federation (NRF). Due to the decrease, retailers continued their discounted prices throughout the holiday shopping season. The positive news is 139 million more people shopped this year over 2012. 

 

In December the Conference Board's Consumer Confidence Index bounced back from November's decline of 72.0 to 78.1. Unfortunately, this is still way below a stable economy reading which is 90. 78.1 though is still some positive news as the Consumer Confidence is now approaching pre-government shut down levels. Consumers are said to be optimistic and in better spirits with confidence looking ahead to future economic and job prospects.

 

The greater Chicagoland retail market ended the fourth quarter had a slight increase to 9.0% from 8.9% in the 3rd quarter. As follows with the increase with the vacancy level, the net asking rents on average dropped to $16.73. From 4th quarter 2012 to the end of 2013 the vacancy level has increased by 30 basis points while net asking rents have only dipped slightly. 

 

The biggest news in the Chicago market is Safeway's Dominick's closes all their 72 stores and pulled out of Chicago. This has hit many retail centers losing their biggest anchor tenant. As a trickle down affect this also has an impact on the smaller stores located in the center who paid premium rents to be at the Dominick's anchored center. On the positive, Mariano's Fresh Market announced they would take over 11 of the local stores. This shall increase Mariano's to 29 strong and employing 10,000 people throughout Chicago. 

retail-4Q13_low

Submarket

Far N.W. Suburbs
N.W. Suburbs
Far North Suburbs
North Suburbs
Far West Suburbs
West Suburbs
City North
City South
Far S.W. Suburbs
S.W. Suburbs
South Suburbs
Kane County

TOTAL

Gross Bldg SF

13,177,796
14,911,156
8,258,998
9,438,018
22,031,280
7,920,311
8,135,510
5,555,599
9,809,672
8,179,246
6,504,106
11,179,576

 125,101,268

Vacancy Rate

8.3%
10.4%
9.5%
6.3%
11.3%
5.1%
5.2%
8.0%
6.3%
5.3%
20.7%
9.9%

9.0%

Average Asking Net PSF

$14.56
$18.53
$15.19
$19.13
$17.79
$17.45
$19.81
$20.56
$16.82
$15.50
$13.16
$14.47

$16.74

Consumers are optimistic about the future economy.

RETAIL_MAP

 

statistical information provided by CBRE Chicago Retail MarketView Q4 2013

 

 

Kristian Lee (88 Posts)

Kristian is a licensed Illinois Commercial Real Estate REALTOR since 2003 working with small to medium sized businesses locally and nationally as well as owners of real estate from office, retail to industrial at Village Commercial. in Frankfort, IL. Kristian specializes in branding each property he represents through different marketing tactics, boots on the ground and the latest technologies gained from his experience. For each tenant representation assignment he becomes his client's "in-house" broker walking them through the process from initial meeting till occupancy. He is the founder of Commercial Main N State, a blog and VBlog providing tips and market rental trends to small businesses on #CRE. He currently on the Board of Directors of the Mainstreet Organization of Realtors®


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