Tag: multifamily

Luxury Living Celebrates 15 Years Of Real Estate Success

Posted on by LLCR Team
Marks 15th anniversary by updating company branding to reflect evolution

Over the last 15 years, Luxury Living has grown in expertise. Specialties include residential leasing and sales, multifamily thought leadership, and award-winning apartment marketing for Class A Chicagoland apartments. This month, the company celebrates 15 years of success, reflects on past accomplishments, and looks toward the future.

“Luxury Living has grown and evolved in so many ways since launching in 2007,” said Aaron Galvin, Founder and CEO at Luxury Living. “With this evolution, it felt like time to refresh our branding to reflect the company we are today and where we are headed. In becoming a nationally recognized vertically integrated real estate company, we have removed the words Chicago and Realty from the name. Today and looking ahead, we are Luxury Living, with an emphasis on Living.”

Company Growth

Founded by CEO Aaron Galvin and Chief Culture Officer Amy Galvin, Luxury Living started from humble beginnings in a River North apartment. Today, the company remains headquartered in the River North neighborhood of Chicago and has a team of over 60. The people of Luxury Living include a mix of operations, accounting, marketing, brokers, and leasing professionals supporting the firm’s exclusive marketing and leasing assignments and Chicagoland renters and homebuyers.

The company’s continued year-over-year growth and expertise continue to earn accolades across the real estate and business community. Inc. 5000 and the Financial Times have named Luxury Living one of the fastest-growing companies in North America for the past five years. The company made GlobeSt.com’s 2022 list of Multifamily Influencers, and CEO Aaron Galvin was also honored as Executive of the Year at the 2022 Illinois Real Estate Journal Awards. Year after year, the marketing team has won numerous awards for apartment marketing, content marketing, lead generation, COVID response, and more.

Investment In Culture

“Over the last few years, we’ve been focused on creating an empowering and inclusive culture. We’re seeing the benefits of these initiatives with minimal turnover during a period of significant growth,” said Amy Galvin. “We’re proud that over 20% of our team members have been with the company for five or more years, and we believe culture will be key to our future success. This is why we’ve implemented multiple new “human first” initiatives to curtail burnout, celebrate our people, and enhance employee retention.”

This year, Luxury Living set a company goal of 500+ hours of company-sponsored learning and development opportunities, including wellness initiatives like Nivati, which provides access to 1:1 coaching, therapy, nutrition, and fitness. The company also committed to the team’s professional development growth, which has already resulted in several promotions throughout the year. Luxury Living also has an industry-leading paid time off policy including extended paid family leave, time off for life disruptions, mental health days and birthdays. Benefit offerings include best-in-class health and life insurance and a company contribution towards retirement.

Learn more about joining the Luxury Living team at www.LuxuryChicagoApartments.com/join-our-team/.

Market Expertise

Luxury Living is Chicago’s most experienced development leasing company, securing over $5 billion in capitalized value for owners while leasing nearly 35% of all new apartments in downtown Chicago. The company has leased over 20,000 apartments and sold 200 condos across 50 exclusive leasing and sales assignments. Lincoln Common, Wolf Point East, Wolf Point West, One Oak Brook Commons, and Logan Apartments are some of the company’s most prominent exclusive marketing and leasing engagements. The company is also consulting on 15 new luxury developments set to deliver starting in 2024.

With the power of the brokerage team and marketing strategy coupled with the process and efficiency of our exclusive development leasing platform, Luxury Living has become the go-to brokerage for the top multifamily developers and capital partners in Chicago. The company is known for achieving record-setting rents while optimizing revenue. Developers and investors seek out Luxury Living for its leasing, pricing and renewal strategies paired with award-winning apartment marketing. Using their expertise, the company is also a general partner on its first multifamily development, a new chapter for the firm.

Looking Ahead

In April 2022, Luxury Living entered the development arena. Partnering with Mavrek Development, GW Properties, and Double Eagle Development, the firms are co-developing The Saint Grand, a mixed-use project at 218 E. Grand in Chicago. The development will feature 248 residential apartments, 8,000 square feet of ground-floor retail space, and 41,000 square feet of office space. Residential units are anticipated to deliver in early 2024.

“Developing is a natural next step in the progression of Luxury Living,” said Galvin. “As a developer, we can use the rental trends we see in the market to inform the architecture, design, and operations of a property. We look forward to expanding this line of our business over the coming years.”

Luxury Living Chicago Realty Earns Finalist Spots in Multiple Categories and Takes Home Executive of the Year at Illinois REjournals Real Estate Awards

Posted on by LLCR Team

Illinois Real Estate Journal recently announced finalists for its 2022 awards program, and Luxury Living Chicago Realty is a finalist in multiple categories. At the live awards ceremony, CEO Aaron Galvin took home the honor of Executive of the Year category. The firm was also a Finalist in the Professional Service Company of the Year category. Learn more about how we earned our finalist nominations by reading below.

 

Executive of the Year – Aaron Galvin

 

With established pandemic policies in place and a renewed focus on growth, Aaron Galvin, CEO and Founder of Luxury Living Chicago Realty, took the company to new heights in 2021.

 

LLCR received multiple awards and recognitions in 2021, including once again being named to the 2021 Inc. 5000 List of Fastest Growing Companies. The company was also named a finalist in two categories for PR Daily’s Content Marketing Awards – “Content Marketing for the Purpose of Lead Generation” and “Thought Leadership Campaign”.

 

As in past years, Aaron led the way as an innovator and trailblazer, working closely with Chicago’s real estate media and multifamily trade publications and publishing multiple articles featuring real-time insight and teachings.

 

Additionally, Aaron hosted the Chicago Luxury Apartment Market Update in March. The virtual conference featured industry insights with more than 300 attendees joining in live. Aaron also served as the keynote speaker for his industry peers, which included everyone from developers and property managers to investors­.

 

Expanding into fresh territory, Aaron also has LLCR expanding into building its first co-development and joint venture with Mavrek Development and GW Properties. The property includes 248 Class A luxury apartments, 40,000 square feet of office, and 8,000 square feet of street-level retail on the northeast corner of E Grand Avenue and N St Clair.

 

 

Professional Services Company of the Year

 

Luxury Living Chicago Realty continues to meet and exceed expectations within the industry, hitting multiple milestones in 2021. With 3,000+ apartments in their leasing portfolio, the company remains an authority on marketing and leasing luxury properties in the Chicagoland area. The most notable exclusive leasing assignments include Wolf Point East, Wolf Point West, Logan, Panorama, River City Apartments, Norweta, and One Oak Brook Commons.

 

By April 2021, exclusive leasing and marketing assignments Norweta, The Jax,and Logan Apartments reached leasing milestones of at least 95% leased.

 

The company’s Wolf Point East, an iconic apartment tower above the Chicago River, hit 95 percent leased in June 2021, exceeding all leasing metrics throughout the lease-up.

 

Panorama, a new BlitzLake development in Chicago’s Lakeview neighborhood, hit the 100% leased milestone in July 2021. The 140-unit luxury apartment building began leasing in January of last year.

 

Holding nearly 35% of the new luxury leasing market share in downtown Chicago, LLCR’s experience and commitment continue to resonate with its consumer base. Additionally, the company continues to launch new leasing projects in the Chicago suburbs and looks forward to ongoing expansion and growth.

Luxury Living Chicago Realty Recognized for Excellence With Three 2022 CAMME Awards from the Chicagoland Apartment Association

Posted on by LLCR Team

At this year’s annual CAMME Awards, hosted by the Chicagoland Apartment Association (CAA) on April 29, 2022, Luxury Living Chicago Realty was recognized with three CAMME Awards for excellence in the Chicagoland rental housing industry. Learn more about each award below.

 

2022 CAMME Award Wins

 

 

Associate Website

Our Objective

Our brokerage-focused website – www.luxurychicagoapartments.com – was built to be a consistent resource for Chicagoland luxury renters. With the goal of informing our clients, we produce guides, checklists, blog posts and more to empower renters to learn about Chicago’s luxury apartment market, local nuances and more.

Our Target Market

Our target audiences are renters relocating to Chicago, renters living in downtown Chicago looking for guidance in their apartment search, homeowners looking for a pied-a-terre or downsize, and past clients. Our team has helped thousands of luxury renters find a place to call home. 

The Result
Our easy-to-navigate website filled with resources, blog posts, beautiful and comprehensive apartment inventory, LuxuryChicagoApartments.com has generated nearly 5,000 leads (4,976) from January 1, 2020-December 31, 2021. With 2021 seeing a 20% growth in leads compared to 2020.

 

Property Website

Logan Apts. is a Class A multifamily development in Chicago’s Logan Square neighborhood. The neighborhood has seen many changes in recent years as chef-driven restaurants, new housing and retail conveniences have moved into the area. Logan itself was built on the site of a demolished Discount Mall on an undeveloped stretch of Milwaukee Avenue.

When our teams began working on branding & marketing, we selected “Logan” as a name to humanize the project and center it on building relationships with the Logan Square neighborhood. Our communications strategy leveraged this connection, using the website as an instrumental tool for keeping the community informed.

We knew the project was going to be transformational for Logan Square, so we set out to build a website that both established the Logan brand and drove leads all while showcasing the positive impact of Logan on the community.

We secured the URL LiveLoganChicago.com, which hosted the website designed and built by Luxury Living Chicago Realty. 

The Result

Following the launch of our website in January 2020, we saw early success by connecting with our email and retargeting lists built from the Logan Apts. landing page. In total, 1,697 submissions were generated by the landing page.

We successfully reached our target personas, and the building was 90% leased by March 2021. From January 2020-March 2021, the majority of the executed leases were from residents that were already living in Logan Square or were relocating from out of state. The majority of residents are aged 25-35, 44.7% live alone and 35.9% are unmarried couples.

From January 2020–March 2021, LiveLoganChicago. com received 131,115 unique website sessions with an average session length of 0:47 seconds.

Logan’s website continues to be at the center of everything we create, and every campaign is set up to measure success or quickly adapt based on insights from our leasing data. 

 

Social Media Program

Wolf Point East is a 698-unit luxury apartment community located at the intersection of the three branches of the Chicago River. Our social media strategy began early on during construction and evolved to communicate progress, leasing milestones and resident activity. 

Running the luxury apartment building’s social media marketing, our content prioritizes Instagram and extends to Facebook, Google Business, and affiliate accounts through TikTok. This combination maximized exposure through impressions and reach to Wolf Point East’s target market of renters.

From September 1–December 31, 2021, our numbers continue to increase: 

  • Instagram posts, reels and stories reached 97,400 accounts with 1,803 accounts engaging with Wolf Point East’s content 
  • Wolf Point East’s Google My Business account had over 100,000 total views with 12,000 actions (website visits, request directions, call) and 86,200 total searches for the property 
  • Facebook had 114,700 total page reach with 2,800 of the reach being organic. There were 180 total reactions (likes, comments, and shares) 
  • From 24 posts, 48 stories, and 1 reel, Instagram reached 31,900 accounts and gained 144 new followers. The account also received engagement from 795 accounts 
  • Luxury Living Chicago Realty posted a tour of Wolf Point East’s penthouse on the company’s TikTok profile that generated 15,100 video views and 15,800 reach

 

For a complete list of 2022 CAMME Award winners, please visit www.cammeawards.com.

 

Learn about our multifamily leasing services here.

 

Luxury Living Chicago Realty Announces First Development Project in JV Partnership with Mavrek Development and GW Properties

Posted on by LLCR Team

A co-development and joint venture between Mavrek Development, GW Properties, and Luxury Living Chicago Realty announce plans for a mixed-use development in the heart of Chicago’s Streeterville neighborhood. Designed by NORR, the property includes 248 Class A luxury apartments, 40,000 square feet of office, and 8,000 square of street-level retail on the northeast corner of E Grand Avenue and N St Clair.

 

The apartments are located at 218 E. Grand Ave., steps from Michigan Avenue shopping, dining and entertainment and walking distance to Lake Michigan and the Northwestern Hospital campus.

 

“We are excited to continue to develop and invest in Chicago,” said Adam Friedberg, Partner at Mavrek Development. “We’ve assembled a best-in-class team, and we are thrilled to have secured the opportunity to add to Streeterville’s skyline and ecosystem. With a Whole Foods steps from the development site and easy access to Lake Shore Drive and Michigan Avenue, this is a prime location well suited for retail, office and multifamily.”

 

The development will feature a mix of floorplans ranging from studios to 2 Bedrooms with an emphasis on in-unit workspaces and private outdoor space to accommodate post-pandemic renter preferences. There will also be a suite of amenities, including an innovative package receiving service offering, state-of-the-art co-working lounge, specialized fitness center and outdoor pool and deck.

 

“We have seen a shift in renter demand asking for more 1 Bedroom + den spaces and paying premiums for units with private outdoor space,” said Aaron Galvin, CEO/Founder of Luxury Living Chicago Realty. “As a co-developer, we can use the rental trends we are seeing in the market to inform the architecture, design, and operations of this property. We have every confidence this property will be well received in the market.”

 

In addition to the multifamily offering, the property will include Class-A office space with a rare flagship opportunity located at 535 N. St Clair. This is the first Class-A office delivery in Streeterville in several years. The two full floors of office space also include private outdoor space, modern ventilation systems and other intentional post-pandemic health safety elements. Office tenants will be able to enjoy the apartment amenities as an added benefit.

 

“We’re seeing a flight to quality in the office market in Chicago,” stated Anthony Hrusovsky, Partner at Mavrek.  “Companies are using new space and residential level amenity offerings to attract their employees back to the office.

“535 St Clair will be the first of its kind in the Streeterville submarket, which we think will result in strong tenant demand,” added Shai Wolkowicki, Principal of GW Properties.

 

The property will replace a parking garage located at 535 N St Clair. Demolition is expected to start mid-summer with groundbreaking by the end of the year. The office will be ready for tenant build outs to start Q3 2023, with the residential delivering in early 2024.

 

“This development is the culmination of many hours of hard work and team collaboration,” said Peter Koch, Partner at Mavrek. “The project is slated to begin construction in the Fall, and we are eager to get going.”

 

Stay tuned for more news about this project and future LLCR developments.

Aaron Galvin Shares the History of Luxury Living Chicago Realty, Growing Pains, and a Bright Future | Zero to 5000 Podcast Interview

Posted on by LLCR Team

CEO Aaron Galvin recently sat down with Drew McClure from the podcast Zero to 5,000. Their conversation covered a range of topics from how Luxury Living Chicago Realty started to what books have guided the CEO and anecdotes about building a business. Amy and Aaron Galvin started Luxury Living Chicago Realty in 2007 one year after celebrating their first wedding anniversary. After a few years as a partner of a two-person leasing company, Aaron realized he had a knack for the industry and a passion for helping people find their homes. Since that time, it’s been quite the ride. 

 

LISTEN TO THE PODCAST HERE

 

How Luxury Living Chicago Realty Started…

As a fresh college graduate in 2002, Aaron Galvin was working in the beer and spirits industry with well-known company names like Anheuser Busch, Stoli Voda, Maker’s Mark and Canadian Club. But his career took a turn when he was introduced to a referral program in his apartment building in Chicago. Current tenants were credited a month of rent after their referral commits to a lease in the building. At the same time, he started developing a relationship with a seasoned apartment locator, helping his friends find apartments downtown. Recognizing the opportunity the internet provided after finding an apartment on Craiglist in Southern California for an internship, Galvin recalls the conversation that changed his life: As an entrepreneurial 23-year-old, he reached out to that apartment locator and offered to help him “get online.” After initial pushback, Galvin issued a firm warning:  “if you aren’t online in the next six months, you’re going to be out of business.” That moment and the confidence Galvin showed inspired this seasoned vet to bring him into the fold and make him a partner. As mentioned in the interview, Galvin is forever grateful for this early mentor.  

After three years of learning the business and starting a few other “side hustles” together, it was time to venture out. With the help of his wife Amy, the two co-founded and launched Luxury Living Chicago Realty (LLCR) in 2007. The company was started and still believes fully in the concept of “providing a higher level service experience for those seeking a home.” Multiple times during the interview, Galvin calls out that whether renting or buying, selecting a home is the most significant financial and emotional decision in someone’s life. This is ingrained in everyone at LLCR. 

During the interview, Galvin admits that during 2008-2010, he “didn’t realize how bad it was.” This truly embodies the entrepreneurial spirit, who is feeling the adrenaline from conception, fueling momentum with grandiose visions paired with naivety. In 2008-2010 ignorance wasn’t just bliss, but it enabled the Galvins to dream up solutions at the edge of reason, completely untethered.

 

How one Lunch and a Four-page Microsoft Word Doc Led to LLCR’s First Development Partner

As the team was growing in 2013 and the world was coming out of a recession, Galvin was able to secure a lunch with an apartment developer in the process of launching a 60-unit loft conversion apartment building. Over lunch and a four-page written proposal promising “60 units in 60 days”,  LLCR became the first brokerage in Chicago to have an exclusive leasing agreement for a multifamily apartment building. Galvin recognized that while property management companies are great at day-to-day operations, it’s nearly impossible for them to be able to provide the same level of service, training and attention to marketing and leasing. Galvin is someone who believes strongly in specialization, empowering everyone to work on the projects and tasks that best serve them and their company. The multifamily industry was ripe for disruption and LLCR was in prime position to lead the charge.  

 

People Are At The Core Of Our Success…

In the interview, Galvin also recognizes that since 2013 the success of LLCR has been largely attributed to his team. “Since 2013, the people of the organization are the reason we’re successful.” Hiring hasn’t always been easy, and of course, LLCR has made mistakes but they have honed their process and focused on two key values. 

Kindness is at the core of LLCR. “We are kind and we only want to work with people who are kind,” explained Galvin. This is rare in real estate. It’s an industry that is typically cutthroat and individualistic – so LLCR turns it on its head in multiple ways. Kindness is key to team interactions. 

The second characteristic common among LLCR’s people is communication. We set up systems, we track it and we consistently evaluate the process. We are never afraid to admit what we don’t know, get smarter and iterate. It’s not just getting the systems right. It’s also in the little messages that go a long way in easing the process for renters. For example, sending an introduction text before tours and letting clients know where to park. LLCR agents habitually deliver consistent information, from the initial contact through to the sale. This is a key differentiator for the company

 

The Messy Middle: Chaos Can Be Perfect Timing for A Good Book…

While people are at the core of success making it the most important, Galvin also recognizes that people are the toughest part of running the business. Galvin reflected on the improvements in their hiring process and shared the deep challenges the company faced in 2019, as the headcount grew and a new culture permeated. For many company’s this could feel like the end of the road but knowing that most companies go through this type of growth, kept Galvin focused and moving forward. 

The timing of the change coincided with one of the books that most influenced Galvin: “The Messy Middle” by Scott Belsky.

“While it can be difficult to withstand and tempting to rush, the middle contains all the discoveries that build your capacity,” writes Belsky.

Since 2018, the company has built a leadership team, senior management team and consistency across the board. As the pandemic hit, LLCR was laser-focused on providing service for their clients and support their people.  At the end of 2020, Galvin shared a new long term goal of having 50 people celebrate 5+ year anniversaries at the company. The company is on track for that goal. 

Since that lunch in 2013, the company has executed 50+ exclusive leasing engagements for some of the most well-known and prominent developers in the city. In addition, the company now employs 50+ people and has developed a proven process for all aspects of the business. 

 

What’s Next for LLCR and Galvin…

The future is bright for LLCR and Galvin. With nearly 35% market share of new luxury leasing in downtown Chicago, the company is viewed as the most experienced and respected leasing and marketing company in Chicago.

Having just launched new leasing projects in the Chicago suburbs and eyeing national expansion, significant growth is ahead. 

Listen to the podcast now for more gold nuggets of insight and inspiration.

 

Luxury Living Chicago Realty Hits Leasing Milestones at Norweta, The Jax, Logan Apartments and Wolf Point West

Posted on by LLCR Team

Luxury Living Chicago Realty is pleased to announce exclusive leasing and marketing assignments Norweta, The Jax, Logan Apartments and Wolf Point West have reached leasing milestones and are at least 95% leased.

“In January and February 2020, we leased 284 units, and the market was very strong. In January and February 2021, we leased 550 units – a 93% increase,” said Aaron Galvin, CEO and Founder of Luxury Living Chicago Realty. “This unseasonably high leasing velocity is a great start to a new year and helped us achieve numerous milestones at properties we are exclusively marketing and leasing.”

Norweta

Norweta, developed by Boston-based Broder Development, features 40 luxury apartments and 32 condominium residences. The apartments are 100% leased, and Luxury Living Chicago Realty is the exclusive marketing, leasing and sales brokerage for both the rental apartments and for-sale condominiums.

“Throughout the pandemic, we’ve seen that renters will pay for the best of the best, and condo buyers are seeking more space and extraordinary finishes, and this has held true especially at Norweta,” said Galvin. “Norweta has raised the bar for rental residences in Chicago. Each apartment and condo features the highest level of finishes, expansive layouts and private outdoor space. The apartments and condos at Norweta live like a single-family home but enjoy the benefits of best-in-class on-site property management and thoughtful amenities.”

The Jax

The Jax is a 166-unit apartment development in the West Loop, developed by LG Development. This luxury apartment building offers studio, one-bedroom and two-bedroom floor plans.

“The Jax fills a unique space in the West Loop and caters to the luxury renter that does not require every amenity, but wants quality finishes and well laid out floor plans paired with a prime location,” said Galvin. “Buildings like The Jax performed well during the pandemic for many reasons including already lower pricing in a competitive market and less emphasis on amenities. The property’s close proximity to the Illinois Medical District also helped as that area continues to thrive, even in the pandemic.”

Logan Apartments

Logan Apartments, located in Chicago’s Logan Square neighborhood, features 220 luxury apartment units ranging from studio to two-bedroom floor plans. The property also includes 62,000 sq. ft. of retail including the neighborhood’s first Target, a welcome addition to the neighborhood. This mixed-use multifamily property was jointly developed by Fifield Companies and Terraco Real Estate.

“The leasing success at Logan Apartments is a great example of how Chicago’s luxury renter socio-economic composition has not changed from 2019 to 2020,” said Galvin. “For the most part, these are neighborhood renters who maintained employment through the pandemic, were able to work remotely, and are most likely to have increased compensation and disposable income as the economy recovers materially in 2022 onwards.”

Wolf Point West

Wolf Point West, located at 343 W. Wolf Point Plaza along the Chicago River, features 509-luxury apartment units and offers studio to two-bedroom penthouse floor plans. Wolf Point West delivered in 2016 and is owned and operated by Hines,  Magellan Development, Wolf Point Owners LLC and the AFL-CIO Building Investment Trust. Wolf Point Owners LLC is a part of Park Holdings Group LLC which is the principal investment entity of the Kennedy Family.

“While our company is best known for luxury lease-ups, the pandemic brought on new opportunities to oversee marketing and leasing at previously stabilized properties,” said Galvin. “In addition to reaching 95% leased at Wolf Point West, we have also optimized the lease expiration schedule and positioned the property for ongoing success and future price increases.”

LLCR’s exclusive leasing portfolio consists of various types of Class A properties from the newest most upscale lease-ups to stabilized properties. LLCR oversees marketing and leasing for fifteen multifamily properties comprising nearly 3,800 apartments in downtown Chicago. The brokerage firm is also currently consulting for a number of developers for future skyline-changing ultra-luxury multifamily developments set to deliver in 2023-2025. 

Luxury Living Chicago Realty Hits Leasing Milestones at Norweta, The Jax, Logan Apartments, and Wolf Point West

Class A Luxury Chicago Apartment Market Update – February 2021

Posted on by Aaron Galvin

Hello Clients, Colleagues and Friends,

Prior to 2020 every panel, article, or conversation about the Chicago apartment market turned to some variation of “how much higher can rent prices go”? With an average of 3-5% rent growth annually for the better part of a decade, it had to stop at some point. And in the second half of 2020, it did. According to Integra Realty Resources, net rents in the Class A apartment market in Q3 2020 decreased by 18.4% as compared to Q3 2019. And while Q4 data is not yet finalized, it’s safe to say those numbers are going to be even lower. Apartments that used to rent over $2,500 per month were priced $500 – $1,000 lower last quarter. Needless to say, nobody will soon forget the challenges from the second half of 2020.

2020 Positive Trends

That said, I am taking a different perspective looking back at 2020. At Luxury Living Chicago Realty (LLCR), we had our best year ever on a leasing volume perspective and outperformed the market by 10% on a net rent basis in Q3. When Q4 data is released, I anticipate we will come out about 15% higher. That’s not to say we did not see significant year-over-year rent decreases, but when we had to lower rents, we did so with a continued focus on market intelligence and a strategic approach to the long term outlook for our rental properties.

In addition to leasing volume, here are three key metrics we tracked at LLCR that provide confidence in the short and long-term outlook for luxury Chicago apartments.

Lease Terms:

While the market did see significant rent decreases, at LLCR we have placed an emphasis on long-term leases since July 2020. These are leases 18 months or longer.

  • With an expected recovery beginning materially in 2022, we have now positioned our portfolio to maximize rents at this time.
  • With a narrative of urban flight, we wanted to provide evidence of renters’ long-term outlook on downtown Chicago. Regardless of price, if renters did not feel safe or believe in downtown Chicago, they would not have committed for an extended period of time.

The result was that we leased over 750 units since July with a lease term of 18 months or longer. This was up 35% compared to 2019, and we feel confident this was the right strategy for our developers and owners.

Renter Income:

Renter income remained relatively unchanged in 2020. The average income for the Class A Chicago renter in the LLCR portfolio in 2019 was $106,549 and in 2020 it was $108,471. This is important to note because even with price decreases, rent payments now make up exponentially less of a renter’s income, leaving additional funds for travel, culture, savings and most importantly, future rent increases. This remains a financially healthy renter base.

Relocation Traffic:

One of the driving forces for downtown Chicago’s growth over the past 10 years has been relocations. During this period the downtown core has grown exponentially, absorbing nearly all of the new apartments delivered. LLCR data from 2020 did not see a decrease in relocation traffic. As compared to 2019, we had an equal 40% of leases categorized as relocation. These are renters moving to downtown Chicago for work, school, or the opportunity to try a new city while working remotely.

With the vaccine imminent, larger employers plan to return to work in the second half of 2021. This should fuel even stronger relocation traffic by Q3 and the next couple of years.

2021 Positive Trends

As we now have a full month of data from January, I can confidently say we hit the bottom of the market in Q4 and things are trending in the right direction. Since a low in November, where the average net rent in the LLCR portfolio was $1,846, we rebounded in December to an average net rent of $1,944. January net rent MTD was $2087. Each week rents are increasing 1-3%. In addition, velocity is way up! In January the LLCR portfolio had over 300 rentals. This is up 97% from January 2020 and better than ANY month we had in 2020.  The spring leasing season has come early, and it’s time for us all to band together to strategically bring this market back to prominence.

In that light, I will be hosting the first ever Chicago Luxury Apartment Market Update on March 3rd from 4:00 – 5:30 PM. This virtual event will feature a even more LLCR data from 2020, a one on one Q&A with a recent Chicago renter, and a panel of seasoned and well-respected luxury multifamily developers discussing the day to day challenges of meeting Class A renter expectations and preserving value in a continued pandemic environment.

 

Sign Up For The Virtual Event Here

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