2016 was an incredible year for real estate. Much has happened that will have very positive effects on the 2017 market. Rental apartments in Chicago and surrounding neighborhoods set a record last year for overall number of rentals, with over 3,830 apartments completed and 4,500 planned for 2017. Decreasing rental values are likely, due to this major increase in rental inventory.
McDonald's announced their corporate headquarter move to our own downtown which will cause an influx of buyers in the Chicago housing market. Sterling Bay will be developing their office at the old Harpo Studios site in Fulton River District. The residential side of the Fulton River District has seen major growth this year, focused mostly on mid-size condominium buildings.
The old Main Post Office sold this year for $130 million to New York-based developer 601W, who has yet to release plans for the enormous space. Vista Tower, a 93-story condominium and hotel building in Lake Shore East, s underway and will become an impressive new addition to our skyline. The Ritz-Carlton Residences at 118 E. Erie underwent new ownership along with a new marketing plan with lower prices. For the buyer looking for Magnificent Mile luxury + immediate occupancy, this condominium building is the place to go.
Despite the lack of land in the Gold Coast we saw some very impressive developments last year. 9 W Walton is still under construction with only seven of their 66 units still available and only five of the 35 recently-completed units remain on the market at 4 E. Elm.
In Lincoln Park, you’ll find sporadic new-construction single family homes and 3-6 flat condominiums popping up and selling quickly. 2016 also boasted A. Finkl and Sons Steel Plant selling for $140 million in Lincoln Park. The 30-acre site is still being designed with the intent of office, retail and residential use.
While we could see an interest rate increase in the new year, financing will be readily available. Given all the positive changes to the city, I am optimistic we will see a very strong real estate market in 2017.