Downtown landlords should enjoy another good year

With rents and occupancy at record highs, downtown apartment landlords are in the middle of a boom likely to last until early 2008, when a wave of new developments hits the market.

DOWNTOWN RENTALS CRUISE

The downtown apartment market is coasting at a lofty level, with rents and occupancy rates at their highest levels in at least five years. Effective rents, which factor in the value of concessions, are shown below.

3rd qtr. ’06 2nd qtr. ’06 3rd qtr. ’05

Class A
Rent per sq. foot $2.21 $2.23 $2.14
Occupancy rate 96.5% 97.5% 95.5%

Class B
Rent per sq. foot $1.91 $1.91 $1.80
Occupancy rate 97.2% 96.9% 96.8%

Source: chicagobusiness.com & Appraisal Research Counselors
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The above is a couple excerpts from the original article. To read the complete article please visit chicagobusiness.com