By all appearances the Chicago suburbs are struggling; large corporations have been reducing their exposure to suburban commercial real estate at an alarming pace for the last 5 years. However, suburban apartments built in the 1960’s and 70’s continue to thrive because they serve a market with insatiable tenant demand. As a guide, we broke downSuburban Chicago’s class B & C multi-family sales records of closed transactions in 2015 in various counties.
In a business where crunching, analyzing and re-analyzing numbers is at the core of every deal, one number separates itself from the rest:
(Net Income) / (Sale Price) = Capitalization Rate