The median net rent per square foot at suburban Chicago apartment complexes rose 7.4% year-over-year in the fourth quarter of 2010, according to a recent Appraisal Research Counselors (“ARC”) report.
During the fourth quarter of 2010 more than half of suburban apartment complexes were offering discounts or concessions, with the most common offering being a “free” month’s rent on a year lease. “Concessions are expected to remain in the market” during 2011, according to the ARC report.
Occupancy levels across the entire suburban market stabilized at 92.9%, after five quarters of improvement. ARC expects “occupancy to remain stable to slightly increasing in the near term with owners continuing to push rents.”