Original Post: www.BisNow.com | Re-post Cawley Chicago 5.5.17
Downtown Chicago commercial real estate gets all the glitz, glamour and headlines, but while few were looking, suburban real estate has been in a slow rebound. Depending on who one talks to, however, this is either a steady recovery or more of the same, with well-located suburban submarkets thriving and the far-reaching suburbs lagging behind….
The biggest change to the renewed interest in suburban real estate is a flight to quality, Rolfs said. The sales happening in the suburban office sector are weighted heavily toward well-located trophy assets with strong amenity packages, and most of those deals involved high-net-worth, local private equity players. Rolfs said it is still hard to attract institutional capital to the burbs. Interest has not trickled down into Class-B assets, and private companies seeking suburban office space are feeling more confident signing long-term leases with larger footprints in the Class-A assets.