Industrial is the New Darling of Commercial Real Estate
CHICAGO—The multifamily and office sectors in the Chicago region have been riding high for years, and each still attracts a great deal of interest from investors. But several subtle shifts in the market are underway, and some potential buyers, looking for diversity in their portfolios, have begun recalibrating their priorities. And these moves could mean making more capital available for other sectors, especially industrial, now seen as potentially more rewarding.
Multifamily is still a very desirable asset class that people need exposure to,” Matt Wurtzebach, vice president with Draper and Kramer’s commercial finance group, tells GlobeSt.com. But worries over a possible softening in the sector means “some capital sources have become more selective on which multifamily assets they will finance,” and now look for ones in even better locations and higher quality sponsorship.