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Larger Chicago Commercial Properties Outperform Smaller Ones

Article:
January 1, 2012 (This archived article was published in 2012.  More recent data is found in the articles section of our web site). A common perception is that most of the commercial property values in the Chicago Metropolitan Area have stabilized since the precipitous drops in 2008 and early 2009. We believe there has been a bifurcation in the market where investment grade properties have generally stabilized or gone up in value but that non-institutional grade properties under 50,000 square feet have continued their decline. Most indices measuring these factors unfortunately blend investment and non-investment grade properties together in their analysis which has resulted in a skewing of reported results that imply stability or improvements in the market place. Peterson Appraisal Group has analyzed thousands of Illinois commercial real estate transactions of buildings 50,000 square feet or less that would generally not be considered institutional grade investments. These studies point to a very different picture. Our study encompassed time periods from January 1, 2009 to December 31, 2012. Chicago Industrial Properties:Value declines of about 4-5% per year Chicago Retail Properties:Value declines of about 5% per year Chicago Office PropertiesValue declines ranging from 6% to 20% per year Chicago Apartment Properties:No declines. The property type appears to have stabilized. Peterson Appraisal Group, Ltd. is a Chicago appraisal firm that focuses exclusively on Chicago area commercial real estate appraisals.

J. Chie, Esquire

Our law firm provides legal work for real estate closings for over 30 years… What distinguishes Chicago Commercial Appraisal Group from other appraisers is the level of thoroughness and details.

A. Raila, Senior Tax Analyst

Gary is a hands-on professional always willing to pick up the phone and work with you... His appraisal firm produces one of the best real estate forecasting reports in the state. I highly recommend his work and his opinion is highly recognized by governmental agencies.

J. Norris, Property Tax Attorney

As an attorney, we deal with many appraisal reports used in tax appraisals. Gary's work has proven successful for our clients and I do not hesitate recommending him for tax assessment appeal appraisals.

C. Noone, property owner

I needed an appraisal for settling an estate. Mr. Peterson was very professional, punctual and helpful with the process. I received my report ina timely manner. I would certainly recommend this company, as well as use their services in the future.

J. Tsiaousis

Gary is one of the top commercial appraisers in Chicago. Every time I have a client in need of a commercial appraiser I refer all work to him without hesitation.