Commercial Real Estate Investment in Chicago in 2023

Investors in commercial real estate are flocking to Chicago, known for its stunning architecture, rich culture, and thriving economy, in search of the next big thing. As this iconic city continues to evolve, so do its neighborhoods, unveiling a tapestry of emerging areas that hold the promise of remarkable returns on investment. 

In this blog, we set out on an intriguing journey to discover the undiscovered gems and bright newcomers in Chicago's commercial real estate market.

The Best Chicago Neighborhoods For Investment in 2023

Real estate investors looking for profitable opportunities have long been drawn to Chicago, also known as the Windy City. As the city develops, some areas stand out as the best places to invest in 2023 because they have the potential to generate sizable returns. West Town, Logan Square, Rogers Park, and Lincoln Park stand out among these promising neighborhoods thanks to their individual qualities that attract investors.

1. West Town: A Diverse Urban Haven 

West Town, a vibrant and diverse neighborhood just northwest of Downtown Chicago, epitomizes what it means to live in a city. This hip area, which includes smaller communities like Wicker Park, Ukrainian Village, and Noble Square, is an art lover's dream, filled to the brim with galleries, stylish shops, and an eclectic dining scene.

The housing market in West Town is consistently strong, and home prices are rising steadily. The neighborhood offers a wide range of investment options, from charming single-family homes to contemporary apartment buildings, despite the average home price being higher than the Chicago average.

West Town is a desirable location for rental property investors due to its high proportion of renter-occupied homes. Due to its convenient location to Downtown Chicago and wealth of top-notch amenities, it is a popular choice for renters, providing investors with high rents and reliable returns.

2. Logan Square: Eclectic Charm and Growing Returns 

Logan Square, which is northwest of Downtown Chicago, has a unique charm that draws families, young professionals, and artists. The area stands out for its beautiful tree-lined streets, historic boulevards, and vibrant dining and nightlife.

Logan Square's housing market has experienced a significant upswing in recent years, with steadily rising home prices. This diversely appealing neighborhood offers a mix of single-family homes, condos, and apartment buildings, catering to various investment preferences.

Logan Square presents a fantastic opportunity for rental property investments due to the high proportion of renter-occupied homes there. Its appeal to families and young professionals ensures a robust rental market with affordable rents. As a result, it presents an alluring opportunity for investors hoping to benefit from the neighborhood's popularity.

3. Rogers Park: Lakefront Living and Affordable Potential 

In addition to a variety of parks, beaches, and cultural institutions like Loyola University, Rogers Park, which is situated on Chicago's far North Side along the picturesque shores of Lake Michigan, has a vibrant and diverse community.

When compared to other well-known Chicago neighborhoods, the real estate market in Rogers Park has more affordable options. There are opportunities for investors with different budgets thanks to the variety of single-family homes, condos, and apartment buildings available at different price points.

The high proportion of renter-occupied homes in Rogers Park makes it a desirable area for real estate investments. A steady demand for rental properties is ensured by the close proximity to Loyola University and the lakefront, giving investors a steady flow of rental income.

4. Lincoln Park: Timeless Prestige and Profitability 

Lincoln Park is a prestigious and in-demand neighborhood located on Chicago's renowned North Side, right next to Lake Michigan. Lincoln Park, one of the city's most reliable real estate markets, is distinguished by its tree-lined streets, elegant brownstones, and a welcoming family-friendly atmosphere.

Lincoln Park typically has home prices that are higher than the Chicago average, reflecting the prestige and demand of the area. From opulent condos to storied single-family homes, investors have a wide range of investment options to choose from that can accommodate various investment strategies.

Lincoln Park still has a sizable proportion of renter-occupied homes despite its suburban vibe. Families and young professionals looking for rental properties will find the neighborhood to be appealing because of its top-notch parks, schools, and amenities. As a result, investors in Lincoln Park can expect high rents and strong demand for rental properties.

 The Chicago neighborhoods of West Town, Logan Square, Rogers Park, and Lincoln Park stand out as the top investment choices in 2023 as the city's real estate market continues to flourish. These communities offer special chances for investors to profit from Chicago's dynamic real estate market, from the hip and diverse vibes of West Town to the eclectic charm of Logan Square, the picturesque lakefront living in Rogers Park, and the timelessly prestigious atmosphere of Lincoln Park. 

Real estate investors can find success by utilizing the allure of these areas and keeping a close eye on the city's changing trends.

Other Areas to Consider in Chicago for Real Estate Investment in 2023

UIC Medical District: A Hub for Healthcare and Housing Demand 

The UIC Medical District, which is on Chicago's Near West Side, has grown and changed significantly in recent years. This area offers fantastic opportunities for real estate investors to capitalize on the growing demand for housing brought on by the influx of medical professionals and students as it serves as a major center for healthcare and research.

Property values in the UIC Medical District have been steadily rising, making it a desirable investment for those looking for potential appreciation. The neighborhood's encouraging growth trajectory is also supported by ongoing development plans in the area.

Humboldt Park: Affordability and Cultural Renaissance 

Due to its accessibility and vibrant culture, Humboldt Park, a neighborhood on Chicago's West Side, has become a desirable choice for real estate investors. The area has a lovely park, streets lined with trees, and an alluring blend of old and new buildings.

A phase of revitalization is currently taking place in Humboldt Park, and new businesses and developments are emerging. Property values there are rising as a result, making it a desirable option for investors looking for emerging communities with growth potential. 

Jefferson Park: A Suburban Haven with Growing Demand 

Jefferson Park, a neighborhood in the Northwest Side of Chicago, has a welcoming, suburban vibe. There are both single-family homes and apartment buildings in the neighborhood, giving real estate investors a variety of investment opportunities. 

Jefferson Park is becoming more and more well-liked among young professionals and families due to its convenient access to public transportation and proximity to downtown Chicago. Due to the steady increase in demand for rentals and the resulting increase in property values, this is a promising investment opportunity.

Wicker Park: Hip and Artistic Hub Driving Solid Returns 

Northwest of Chicago's downtown, Wicker Park is known as a trendy, creative neighborhood with a vibrant nightlife. The area is perfect for real estate investing because of the mix of modern condos, old apartment buildings, and historic mansions.

High rents in Wicker Park as a result of the area's high housing demand have drawn in real estate investors looking for reliable returns on their investments. Young professionals and creative types are drawn to the neighborhood's lively atmosphere and wealth of amenities, which boosts property values.

River North: Luxurious Living and Thriving Rental Market 

The trendy neighborhood of River North, which is near the Chicago River, is well-known for its opulent high-rises, fine dining, and art galleries. The region has seen an increase in the demand for rental homes, making it a desirable choice for real estate investors.

River North attracts renters with its combination of luxury and convenience thanks to its close proximity to both downtown Chicago and Lake Michigan. Strong rental demand and high property values make the area a top choice for investors hoping to profit from Chicago's booming real estate market.

Factors To Consider Before Investing in Chicago: 2023

Before making any real estate purchases in Chicago in 2023, investors should carefully consider a number of variables that may have a big impact on the outcome and profitability of their endeavors.

1. Economic Outlook: 

Assessing Chicago's economic conditions and growth prospects is vital. Investors can expect a stable and favorable real estate market if the economy is strong and the industries are diverse.

2. Neighborhood Analysis: 

Conducting a thorough analysis of the target neighborhoods is essential. Finding the most promising areas for investment can be aided by being aware of the past and future trends in real estate values, rental demand, and tenant preferences.

3. Property Taxes and Expenses: 

The overall return on investment may be impacted by Chicago's infamously high property taxes. To accurately calculate an investment's profitability, all costs must be taken into account, including those for maintenance, insurance, and property management.

4. Rental Market: 

For investors looking to purchase rental properties, it is essential to assess the rental market in particular neighborhoods. The potential for rental income can be ascertained by understanding average rents, vacancy rates, and the demand for rental housing.

5. Real Estate Market Trends: 

Making informed decisions will be aided by keeping a close eye on the general real estate market trends in Chicago, including home prices, inventory levels, and days on market.

To Summarize

Investing in the Chicago real estate market in 2023 presents an exciting opportunity for investors seeking lucrative returns and long-term growth potential. With its diverse neighborhoods, strong rental market, and ongoing developments, Chicago offers a wide range of investment options to suit various preferences and investment goals.

Assetmonk's expertise in real estate investments and their structured debt offerings provide investors with an opportunity to participate in real estate projects with a lower risk profile while enjoying attractive returns. Invest today!

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Why is Chicago considered a favorable city for real estate investment in 2023? 

Chicago's diverse neighborhoods, strong rental demand, and ongoing economic growth make it an attractive destination for real estate investors seeking promising returns.

What factors should I consider before investing in a specific neighborhood in Chicago? 

Factors to consider include the economic outlook, property taxes, rental market trends, local regulations, and long-term growth potential in the neighborhood.

Which Chicago neighborhoods show great promise for real estate investment in 2023? 

West Town, Logan Square, Rogers Park, Lincoln Park, and other emerging neighborhoods like UIC Medical District, Humboldt Park, Jefferson Park, Wicker Park, and River North offer excellent investment opportunities.

How can I mitigate risks in my Chicago real estate investments? 

Diversifying your investment portfolio, partnering with experienced professionals, and conducting thorough due diligence can help mitigate risks in the dynamic real estate market.

How can Assetmonk's Structured Debts benefit me as a real estate investor in Chicago? 

Assetmonk's Structured Debts provide a lower-risk investment option, allowing you to participate in real estate projects with expert guidance and attractive returns, enhancing your overall investment strategy.