Extra, extra read all about it! Chicago’s future for real estate is looking extra bright!
What is the new industrial development about?
The Globe Newswire reports that Black Creek Group, a Denver-based real estate investment manager, just announced that there will be a trio of new industrial developments in the Chicago area. The projects, which will be distributed near O’ Hare Airport and Naperville, are going to be the talk of the town! Get ready as Chicago makes its way up as an important commercial hub that is guaranteed for future growth. The locations in which the projects will be prepared are expected to attract tenants and make this the best real estate investment opportunity for investors. Marty Edmondson, Senior V.P, Market Officer – North Central Region for Black Creek Group, says that “these three projects are examples of their strategy for creating highly optimized industrial spaces in relatively developed areas.”
The project that will be done in the O’Hare submarket consists of two distribution centers. The buildings will be built with a key strategy in mind of “developing a modern, high-cube industrial space in land-constrained locations.” The two buildings will be able to take in multiple numbers of tenants and the project is expected to finish in Q1 2019. So investors, start thinking about Chicago real estate and use this opportunity to your advantage!
Furthermore, the project which will be distributed in Naperville is a speculative, multi-tenant industrial development. The location is expected to attract tenants who don’t need to be close to Chicago’s central business district and at the same time will appreciate being close to the heavily populated towns of Naperville and other surrounding towns. This project as well is expected to finish in Q1 2019.
What does this mean for real estate investors?
This anticipated future development is the perfect excuse for real estate investors to seize the opportunity and invest in Chicago real estate, both in its commercial real estate and residential real estate. It means a rise in demand for rental properties from tenants all over the city resulting in positive cash flow opportunities for real estate investors! Continue reading to find out why you should invest in this ambitious city.
Related: Should You Go for Chicago Real Estate Investing?
Why is Chicago a great place for investing?
Now that I’ve updated you with the latest developments going on in The Windy City, let’s talk about why Chicago is the city to invest in. Besides the fact that I just mentioned, it is obvious that Chicago has many future developments that offer attractions to not only people from all over the country but worldwide as well. The high demand for investment properties makes Chicago real estate a winner for many real estate investors. Chicago’s population continues to increase at about half of the national rate every year. Chicago’s growing population has caused prices to go down significantly below income level, which is good news for Chicago real estate investing and good news for real estate investors thinking about investing in Chicago real estate. Here are a few reasons why Chicago real estate is worthwhile:
Related: What’s Up With the Chicago Real Estate Market?
- A stable, diverse economy: Chicago’s economy is known for its diversity and no other industry can dominate Chicago’s economy. It is made up of an array of markets that include finance, commerce, manufacturing, technology, telecommunications, and transportation.
- Good growth: Median household income in the city has been steadily rising, reaching higher than the national average. All this growth is driving the Chicago real estate market upwards.
- Number one city in the US for corporate investments: With an increase in international investments, Chicago is becoming the next big thing for real estate investors. Chicago real estate offers lower real estate prices with plenty of potential.
- A cultured and connected city: The city is the third-most-visited tourist destination in the US. This is causing the demand for Airbnb rental properties to skyrocket.
- Low property prices: Property prices are low in the Chicago real estate market, making it very appealing for investors.
- Promising yields: Chicago’s thriving rental market average gross yields are in the extraordinarily high range of 7-8%.
- Encouraging appreciation: Prices are expected to increase by 4.5% by 2019.
What’s the deal with Airbnb rentals in Chicago?
Due to the clusters of visitors, tourists, and work travelers, Chicago has become one of the top cities for Airbnb investing. The demand for Airbnb rentals and other short-term rentals has been apparent in the Chicago real estate market. For investors looking to make money in real estate, renting out your investment property on Airbnb is definitely appealing with the boom of visitors to Chicago. Visitors and tourist now prefer Airbnb rentals over hotels because it is much cheaper and more convenient. Plus many times it serves as an opportunity to form relationships between the Airbnb host and the guest because they get immersed in the culture when they choose to live with the landlords.
Of course, finding the right location for Airbnb rentals doesn’t have to be a time-consuming task anymore. With Mashvisor, real estate investors can find Airbnb properties in their selected location (in this case Chicago) and analyze the property before making any investment decisions. Check out Mashvisor’s Chicago investment analysis and explore your options.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Related: Dealing with the New Airbnb Chicago Investment Property Ordinance
A final word
Chicago real estate has proven to be a good potential for a lot of real estate investors. Every area in Chicago is a profitable location with many opportunities for successful investments. Whether it’s Chicago’s commercial real estate or residential real estate, both will have you making money in no time. The number one thing you need to keep in mind before making any investment decisions is to always conduct a real estate market analysis and educate yourself thoroughly about the property through investment property analysis. Mashvisor can help you perform a property analysis with the different tools we provide such as our rental property calculator and heat map. To learn more about our product, click here.