why are chicago retail condos so cheap???

[Mary S.]

I am new to the Chicago market, and I'm not understanding pricing here. I am seeing a lot of retail condos on trafficked streets in good locations in the city with a 10-12% cap rate (part. lower-priced condos).  I know people are concerned that property taxes will rise slightly, 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 sell at 7-8 cap rates, and the Boston/DC/NY markets sell at 4-5 cap rates.  

Am I missing something in Chicago? Are investors just concerned about the city in general? Is there something else?