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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.

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Chicago Industrial Indicators - Appraisal Statistical Data

(This archived article was published in 2013.  More recent data is found in the articles section of our web site). Chicago has the largest industrial market in the nation with over 1.3 billion square-feet of space. The Chicago CSMA covers northeast Illinois, northwest Indiana and southeastern Wisconsin. The bulk of the space is situated in the City of Chicago, suburban Cook County and around O'Hare International Airport. Peterson Appraisal Group focuses its industrial appraisal practice in this area. The industrial market has been gradually improving over the past two years. In January 2013 Crain's Chicago Business reported a year-end 2012 vacancy rate of 9.5% (www.chicagorealestatedaily.com), the lowest since mid-2008. A Chicago area commercial appraiser must pay particular attention  to occupancy levels which can vary significantly. Peterson Appraisal Group's attention to specific sub-market indicators is one of the reasons the Chicago industrial property class is one of our primary areas of expertise.
 Submarket Total InventoryVacancy Rate 
Central DuPage County84,175,6749.89% 
Chicago North90,342,780 7.16% 
Chicago South84,587,011 14.44% 
DeKalb County19,981,307 3.09% 
Elgin I-90 Corridor28,273,823 12.01% 
Far South Suburbs45,082,832 7.03% 
Fox Valley89,389,701 9.17% 
I-290 North76,206,830 12.91% 
I-290 South45,244,723 7.93% 
I-39 Corridor17,452,555 6.80% 
I-55 Corridor73,022,765 11.88% 
I-80/Joliet Corridor68,002,826 13.30% 
Lake County70,162,219 11.15% 
McHenry County30,099,848 13.36% 
North Suburbs57,639,498 9.25% 
Northwest Suburbs34,151,763 10.06% 
O'Hare139,976,695 10.06% 
South Suburbs102,024,523 10.32% 
Metro Chicago Total1,155,817,373 10.38% 
Northwest Indiana54,230,618 8.03% 
Rockford Area51,574,970 10.84% 
Southeastern Wisconsin47,731,500 6.62% 
GRAND TOTAL1,309,354,461 10.16% 
Source: Colliers International Chicago Industrial Market Overview (Year-End 2011) 
Vacancy & Absorption - Chicago Area 

Strong negative absorption rates in 2008, 2009 and more modest declines in 2010 were finally reversed in 2011.  The industrial inventory of vacant space declined to 133 million square feet at year end 2011 from 159 million in 2009.  Flex space continues to struggle with negative absorption but warehousing demand (almost 5 times greater than manufacturing demand) led the way to a strengthening of the market.   
 Chicago Area Industrial Rental Rates  Industrial lease rates in 2011 show only very slight improvement over 2010.Industrial brokers are reporting fewer leasing concessions being required to attract tenants, however, which is a positive. 

New Industrial Space Deliveries - Chicago Market Area  New industrial construction dropped from peak levels of around 19 million square feet in 2008 to only a few million in 2010 and 2011.  The dramatic decline in new construction has helped stabilize industrial market vacancy levels.  There continues to be very little speculative industrial development with built-to-suit construction dominating current activities.

Chicago Area Industrial Sales Price/Cap Rate Trends  Sales of Industrial buildings to the investment community dropped 60% in 2012 from 2011.  The average sales price has remained relatively flat at under $50 per square foot.  Capitalization rates averaged around 8% benefiting from extremely favorable loan rates.