Chicago has had a record number of cranes in the air this past year. However, the new year brings this to an end. A New York based firm, Dodge Data & Analytics, predicts that the construction boom will drop by 10%. Which makes this the third decrease in 4 years, and the biggest since the Great Recession.
It’s difficult to believe this decrease since retailers are consistently looking for industrial space to store goods; rents are skyrocketing, and office space demand has been the highest since 2007. Developers haven’t been able to keep up with these demands. However, real estate investors and developers are being conservative until they figure out how much room they have to truly expand their efforts.
Michael Newman, president of Chicago developer Golub, states that convincing capital groups to invest in Chicago developments has been the most challenging time that he can remember. Many developers such as Golub, are considering investments in other markets such as Denver.
This doesn’t mean that new construction in Chicago will be nonexistent. It simply means that new construction will lessen.
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