All sectors of commercial real estate in the Midwest are expected to improve this year, albeit at different rates of performance, according to a new report issued by Chicago-based BMO Harris Bank.
The report, titled ‘Navigating Challenges and Opportunities in the Midwest Commercial Real Estate Market,’ predicts that the healthcare and for-profit educational sectors will boost the region's commercial property markets, while the demand for short-term housing will be very strong.
‘Rental housing is the current shining star of commercial real estate,’ says John Wise, director of commercial real estate at BMO Harris Bank and author of the report. ‘Industrial development is gaining traction, although demand for office and retail properties is mixed.’
However, the report also forecasts that demand for multi-tenant office space will remain tepid, and that significant gains in new construction are still several years away.
The full report is now available online.
