Throughout 2014 there have been many examples of a drastic escalation in the valuation of land within the confines of the City of Chicago. Since much of this land is being developed for the purpose of condominiums and apartments, developers may find it more attractive to shift their focus to surrounding neighborhoods. These value oriented investors and developers will begin to move further and further away from the heart of the city in an effort to find less expensive land and redevelopment options.
This ever-evolving landscape could lead to a new atmosphere in and around the city as the cities neighborhoods begin to have more of an office space offering. However, some employers are realizing that this is not such a bad thing. As businesses relocate out of the heart of the city, they are moving closer to employees. The feeling is that this will attract more employees by bringing the job closer to the talent pool.
The net result of all of this for the larger community will be a neighborhood scene with many mixed use and other developments. These will likely contain a larger and larger portion of office space, as the trend continues. All of this may not become obvious to the casual observer even by the end of next year. However, as this trend persists, the landscape of Chicago’ commercial real estate appears to be shifting.
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