CHICAGO (WBBM) — The local commercial real estate market is coming back, defying expectations of a prolonged collapse like the one that decimated the housing market.
As WBBM Newsradio 780’s Nick Young reports, many experts were predicting doom for the commercial real estate market, after the housing market slid into a prolonged tailspin.
LISTEN: Newsradio 780’s Nick Young reports
But Crain’s Chicago Business reports there are encouraging signs that point to the commercial real estate market avoiding that fate, as long as delinquencies decline, property values pick up, and leasing grows more robust at shopping malls, warehouses and office buildings.
One high-profile example of the turnaround is the Allerton Hotel, according to Crain’s. The hotel at 701 N. Michigan Ave. is in foreclosure, and yet rising property values could be just the lifeline the property owner needs to help pay off a $69 million loan.