Boardwalk REIT Reports Strong 2025, Hikes Dividend

- The Chicago multifamily market is experiencing strong fundamentals, with a vacancy rate of 5.0%—well below the national average of 8.5%. Rent growth is forecast to be 3% in 2026, driven by a significant shortage in new construction, which is at its lowest level since the Great Financial Crisis. - In late 2025, multifamily capitalization rates in Chicago averaged 6.7%, higher than the national average, which may present opportunities for investors as rent growth accelerates. Across the Midwest, cap rates are stabilizing, with the region seeing the most compression in the fourth quarter of 2025 as investment capital followed renter migration to more affordable locations. - For investors building a personal portfolio, tax strategies such as 1031 exchanges allow for the deferral of capital gains taxes on the sale of an investment property by reinvesting the proceeds into a similar property. Additionally, depreciation is a key deduction that allows investors to write off the value of a property over time, reducing taxable income without affecting cash flow. - Listed Real Estate Investment Trusts (REITs) have historically outperformed private real estate, with one study showing average net returns of 10.9% for listed REITs versus 8.6% for private real estate between 1998 and 2021. While REITs can have higher short-term volatility, their debt structure is often more stable, with public REITs holding under 10% in variable-rate debt compared to nearly 50% for private real estate. - Professionals transitioning from hospitality to real estate can leverage key transferable skills in customer service, sales, and operations. Career paths often start in hotel operations before moving into roles like acquisitions, development, or asset management within real estate investment firms. - For those aspiring to work at investment firms, a survey by Ferguson Partners indicated that 47% of commercial real estate firms planned to increase staffing in 2025, an increase from 37% in 2024. Open roles in Chicago for real estate investment firms include positions like investment analyst, acquisitions associate, and portfolio management associate. - To stay informed, Midwest real estate professionals often follow publications like *GlobeSt*, which covers commercial real estate news in major cities including Chicago, and *REJournals*, which provides Midwest-specific market analysis. Market outlook events hosted by organizations like the Chicago Association of REALTORS® also provide key insights from economists. - Aspiring investors can raise capital through various methods, including traditional debt and equity financing, real estate syndication to pool funds from multiple investors, and real estate crowdfunding platforms. Building a strong financial profile with detailed business plans and clear performance metrics is crucial for attracting investor interest.