@properties’ 2016 @Report Highlights Risks, Trends For New-Construction Condo Development In Chicago

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Low inventory and luxury demand fuel builder confidence, while exclusive industry survey reveals intensifying risk factors and strategies for mitigation.

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This is the most comprehensive @report we’ve ever assembled, and the best thing is that the most important insights are coming directly from the people who are designing, building, financing and selling new, for-sale construction in Chicago.

@properties, Chicago’s No. 1 real estate brokerage firm by market share and the city’s leading firm for the sales and marketing of new residential developments, has released its 2016 @report, an overview of market and price trends for condominiums and townhomes in downtown Chicago.

In addition to market data on eight core city neighborhoods, the 2016 @report also identifies five principal risks for condominium development in the year ahead, based on survey results from industry insiders including developers, brokers, architects, general contractors and bankers.

“This is the most comprehensive @report we’ve ever assembled, and the best thing is that the most important insights are coming directly from the people who are designing, building, financing and selling new, for-sale construction in Chicago. It’s not just an analysis of the market from 30,000 feet. It’s people from all sectors of the industry saying, ‘Here’s what we’re dealing with. Here are the big challenges and the big opportunities,’” said Michael Golden, co-founder of @properties.

“We believe there’s a lot of information here that will spur conversations and provide some guidance on future development. We’re excited to get the report into the marketplace and discuss the findings with our clients and the industry,” added @properties co-founder Thaddeus Wong.

Survey responses from more than 90 high-level executives in residential development and related fields led to the identification of five principal risks for condominium development in the year ahead. The risks are: rising construction costs, political hurdles, the economy, escalating land costs and pitfalls in product design and programming. The first half of the @report explores each of these risks and offers strategies for mitigation.

The second half of the report includes @properties’ annual analysis of pricing and trends in the downtown neighborhoods that traditionally experience the greatest volume of new for-sale construction: the Gold Coast, River North, Streeterville, the Loop, the South Loop, the West Loop, Lincoln Park and Lakeview.

Among the findings in the 2016 @report:

  •     Rising construction costs are the No. 1 concern among condo developers for the year ahead.
  •     More than twice as many developers are concerned about the political hurdles to development than the ability to obtain construction financing.
  •     Throughout 2015, West Loop condominiums sold for an average of 100.7% of list price, and Months’ Supply of Inventory averaged less than two months.
  •     In 2015, the Loop condo market saw the same number of condo sales (6) at $1,000 per square foot or higher as the Gold Coast.
  •     In Lakeview, as of early 2016, more than five times as many condominiums were on the market for $1 million or more than were sold in the neighborhood in all of 2015.
  •     Among new-construction condo buyers, fireplaces, Jacuzzi tubs and carpeting are out; large outdoor spaces, smart home technology and radiant heat floors are in.

To download a copy of the 2016 @report, visit http://www.atproperties.com/developer-services.

About @properties
Established in 2000, @properties is the No. 1residential brokerage firm in Chicago with nearly 20 percent market share, and is the city’s leading firm for the sales and marketing of new-construction, condominium conversion and adaptive re-use developments. @properties has 21 office locations in the city, surrounding suburbs, Southwest Michigan and Lake Geneva, Wisc.

For more information, visit http://www.atproperties.com.

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Peter Olesker
@properties
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