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203 Sheridan Road in Winnetka and 3507 West 51st Street on the Southwest Side (Redfin, 42 Floors, iStock)
Let’s start with a bit of good news given that 2020 didn’t provide Chicago’s real estate market with much of it.
The industrial sector withstood a bruising year far better than most others, sustained in large part by Amazon. As e-commerce orders soared during the pandemic, the Jeff Bezos behemoth went on a warehouse-leasing binge in Chicago.
But other asset classes in the city have spent the last nine-plus months on a skyscraper elevator in freefall. The ride has left much of the industry queasy and stumbling as it heads into 2021.
The Commercial Mortgage Market Since the Covid-19 Pandemic
The COVID-19 pandemic has caused disruption to many facets of what was once everyday life. As Americans sheltered in place, brick-and-mortar retail shopping and travel came to an abrupt halt. Those who could do so began working from home, while many who couldn’t found themselves furloughed or unemployed. An inevitable consequence of this disruption is that malls and hotels sit underutilized and owners of office properties and multi-family housing have granted rent concessions. Many commercial property owners, even owners of historically well-performing properties, are now struggling to make mortgage loan payments. Hospitality and retail properties have suffered the greatest losses, but office and certain segments of multi-family housing have also suffered significant hits.