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45
Population 523,599 8,669,654
Lake/McHenry
Lake/McHenry
Lake
Lake
Lake
Lake
Lake
Lake
Avg. Annual Five-Year Chg.* -0.6% 0.7%
20
14
294 Michigan
Michigan
Michigan
Michigan
Michigan
Michigan
41
Total Households 188,275 3,095,362
90
Far
Far Far
Far
Northwest
Northwest North
North Avg. Annual Five-Year HH Chg.* -0.9% 0.4%
Arlington
Arlington
Heights
Heights Median Household Income $54,871 $60,565
Kane
Kane North
North
Lombard/
Lombard/
Near
Near Median Age 36.2 35.2
88 Addison 88
Addison
West
West 55
South
South Employment 239,823 3,962,437
Far
Far West
West
294
Vacancy Rate (2Q 07) 6.2% 7.3%
30
55
45
Far
Far
Southwest
Southwest
Southwest
Southwest Avg. Asking Rent (2Q 07) $18.67 $19.31
South
South
30 * 2006-2011 Forecast
1,200
construction skyrocketed in 2006, with over 1.1 million square feet
900 of retail space added to the Near West submarket. During the last
year, six projects came online, averaging just under 200,000 square
600 feet each. In response to the significant retail stock additions last
year, there are no projects currently under way in the submarket.
300
◆ While there are currently no retail development under construc-
0 tion in the Near West submarket, there are eight projects totaling
03 04 05 06 07* 500,000 square feet that are being considered.
* Forecast
Sources: Marcus & Millichap Research Services, Reis, TWR
Average Asking Rent 10% ◆ Submarket vacancy has fluctuated over the last several years, but
$19
Vacancy
has since returned to levels more in line with the metro average.
$18 8% Vacancy in the Near West submarket is currently 6.2 percent, up
Vacancy Rate
30 basis points from the end of last year, when significant stock
$17 6% additions precipitated a modest increase.
$16 4% ◆ Despite varying vacancy in the submarket, owners have been able
to keep increasing rents, as asking and effective rents have posted
$15 2% consistent growth over the last several years. Asking rents are cur-
03 04 05 06 07*
* 2Q 2007 rently $18.67 per square foot, up 3.3 percent from year-end 2006.
Sources: Marcus & Millichap Research Services, PPR, Reis
Multi Tenant
remained consistent over the last 24 months, though multi-tenant
$225 velocity is based on a minimal number of transactions.
$150 ◆ Year over year, the median sales price for single-tenant properties
has increased a mere 1.3 percent to $241 per square foot, though
$75 during the previous 12-month period the median price climbed 56
percent. Over the last year, the median price for multi-tenant prop-
$0
erties increased minimally, or 1.4 percent, to $140 per square foot.
03 04 05 06 07*
* Trailing 12 Months Ended June 30
Sources: Marcus & Millichap Research Services, CoStar Group, Inc. ◆ Though cap rates for both property types have compressed in
recent years, they remain favorable, hovering in the low- to mid-
7 percent range, which will still attract the attention of local and
out-of-state buyers.