Help me analyze a Chicago prroperty

[Mary S.]

I have an offer pending on a retail condo in chicago with about a 10-12 cap rate. Its in a good area of the city (lincoln park/lakeview) with decent traffic. 

I'm not understanding pricing here.  I know people are concerned that property taxes will rise slightly, population growth etc.. but is that the sole reason for the high cap rate? There are very few, if any, other big cities with such cap rates. Even smaller big cities down south sell at 7-8 cap rates, and the Boston/DC/NY markets sell at 4 cap rates. Am I missing something in Chicago? Are investors just concerned about the city in general? Is there something else? Even though NY may be a better market does that make up for 1/3 less of net income over the years?

Thanks!