CHICAGO | Highrise Projects & Construction, v7

[Jibba]

400 W Huron and The Hudson. Parking lot on the right will be gone soon as well.

[JK47]

Originally Posted by Stockerzzz

The CHA agrees with me. They're testing an eight-year pilot program.

• The Chicago Housing Authority is preparing to roll out a pilot program that would cut off housing vouchers for some people after eight years, an attempt to nudge more recipients into the workforce and shrink the long waiting list for rental assistance.

Perhaps I was too subtle. Let me rephrase. You are confusing rationing a resource with a solution to the underlying cause. Forcing people out of subsidized housing won't "solve" the reason why they're in subsidized housing in the first place.

[the urban politician]

^ It could.

An argument could be made that people are in subsidized housing perpetually because subsidized housing exists....perpetually.

[marothisu]

(In before Curbed, haha). Not sure if this was talked about, but the 12 story Atlantic Bank Building at 168 N MIchigan Ave was issued a building permit last Tuesday to become a hotel with 210 guest rooms. This was going to be the Hotel Indigo.

The interesting thing is that in May, Curbed had an article (http://chicago.curbed.com/2016/5/12/11663356/chicago-michigan-avenue-hotel-construction-resumes) stating that they'd be putting a 4 story addition onto it and it would be 200 rooms. The permit from last week mentions a 5 story addition and 210 rooms, so it looks like things have grown even more since then by 10 rooms and another floor.

[MayorOfChicago]

Originally Posted by the urban politician

Crains is reposting that occupancy is beginning to slip for downtown apartments.

Hotels are also starting to slip.

Office is already maxed out.

That leaves us with condos, and I'm not too sure how deep that market is.

I hope this one lands gently. The boom is going to be over soon

Much of it is tied together. I think apartments are the main one who are running out of steam, or at the very least they have a very long leash of supply coming on the market. It wouldn't be a bad thing to rein in the construction of apartments just a bit to shorten that leash and get things more stable, as opposed to flooding it with thousands of units each year. My company works in real estate investment, and apartments is by far the most "mature" market right now nationwide as well as in Chicago. It's been a huge run, but it's going to take a pause. I hope it's just a pause and not a crash.

Office is actually still looking good in Chicago. There are very high profile buildings under construction now, but there was virtually nothing for years now, and there's a lot of pent up demand. That and the constant pull of suburban offices to downtown keeps the vacancy rate low. It could have creeped up given that employers today are making due with fewer and fewer square feet per employee. Office should be able to keep it up.

If office keeps it up, it will greatly help the local apartment sector as well, with workers to fill these new units.

Hotels I can't speak much on, but you would have to think with THOUSANDS of new hotel rooms coming online every year, that the city needs to be very mindful of its reputation, and needs to be very mindful of the crime issues that will eventually start souring tourists and visitors on choosing Chicago. I've been hearing a lot more lately from people visiting, or friends/family around the country or in speaking with people in other cities when you mention you're from Chicago - they all bring up the crime and craziness going on. Many of them talk of Chicago as if it's a place they want to avoid.

Condos are certainly up for grabs - I think if they build them, people will purchase them.

Much of it depends on where the national and local economy go in the next year or two. Illinois REALLY needs to get itself together soon. This budget and pension issue are absolutely ridiculous and doing terrible damage to the potential of our economy.

[Vlajos]

Originally Posted by MayorOfChicago

Much of it is tied together. I think apartments are the main one who are running out of steam, or at the very least they have a very long leash of supply coming on the market. It wouldn't be a bad thing to rein in the construction of apartments just a bit to shorten that leash and get things more stable, as opposed to flooding it with thousands of units each year. My company works in real estate investment, and apartments is by far the most "mature" market right now nationwide as well as in Chicago. It's been a huge run, but it's going to take a pause. I hope it's just a pause and not a crash.

Office is actually still looking good in Chicago. There are very high profile buildings under construction now, but there was virtually nothing for years now, and there's a lot of pent up demand. That and the constant pull of suburban offices to downtown keeps the vacancy rate low. It could have creeped up given that employers today are making due with fewer and fewer square feet per employee. Office should be able to keep it up.

If office keeps it up, it will greatly help the local apartment sector as well, with workers to fill these new units.

Hotels I can't speak much on, but you would have to think with THOUSANDS of new hotel rooms coming online every year, that the city needs to be very mindful of its reputation, and needs to be very mindful of the crime issues that will eventually start souring tourists and visitors on choosing Chicago. I've been hearing a lot more lately from people visiting, or friends/family around the country or in speaking with people in other cities when you mention you're from Chicago - they all bring up the crime and craziness going on. Many of them talk of Chicago as if it's a place they want to avoid.

Condos are certainly up for grabs - I think if they build them, people will purchase them.

Much of it depends on where the national and local economy go in the next year or two. Illinois REALLY needs to get itself together soon. This budget and pension issue are absolutely ridiculous and doing terrible damage to the potential of our economy.

Interesting on the tourism front. It appears this summer broke records for hotel occupancy and room rates. My take from talking to people around the country is that they realize the horrible homicide numbers do not really affect the vast majority of people.

[pilsenarch]

^Not only do they not affect the vast majority of people, but from a historical perspective, they are not really that bad...

[Ryanrule]

Media doesnt have detriot to pick on anymore.

Hopefully some southern suburban city goes to shit to distract them.

[aaron38]

Originally Posted by MayorOfChicago

Much of it is tied together. I think apartments are the main one who are running out of steam, or at the very least they have a very long leash of supply coming on the market. It wouldn't be a bad thing to rein in the construction of apartments just a bit to shorten that leash and get things more stable, as opposed to flooding it with thousands of units each year. My company works in real estate investment, and apartments is by far the most "mature" market right now nationwide as well as in Chicago. It's been a huge run, but it's going to take a pause. I hope it's just a pause and not a crash.

Why limit construction? It's supply and demand. We all know how insane rents are now. 600sq ft. studios are renting for more than my 3bd home mortgage, including property taxes. If landlords start having trouble filling apartments, it's really quite simple. Drop the rent.

That would benefit the economy nicely, give people more money to spend each month.
I really hate the NIMBY collusion we get where existing property owners try to limit supply to boost their own value.

[the urban politician]

^ You obviously have almost zero understanding of how the modern economy works.

Most property owners have debts on their properties that rely on rental income. If those debts go into default by rents dropping too low, a whole shitload of properties go underwater. A whole lot of wealth gets erased, banks go into crisis, and lending stops. When lending stops, the economy freezes.

So dropping rents are very bad news.

[Chi-Sky21]

They should not be relying on the rent to be so high to cover their liabilities. Anybody who builds with the assumption of rents being this high forever deserves what they get....banks included since they did not do their due diligence and see developers were overbuilding. But with the real way the modern "economy" works it does not really matter...banks will just come running to uncle sam/(we the tax payers) to bail them out again. UNLESS those HORRIBLE onerous regulations Obama put on them for more more reserves actually work. I can't wait for all those banking rules to be relaxed again so we can all go in the tank together!

[OrdoSeclorum]

Originally Posted by the urban politician

^ You obviously have almost zero understanding of how the modern economy works.

Most property owners have debts on their properties that rely on rental income. If those debts go into default by rents dropping too low, a whole shitload of properties go underwater. A whole lot of wealth gets erased, banks go into crisis, and lending stops. When lending stops, the economy freezes.

So dropping rents are very bad news.

I think what we want is enough supply to come onto the market so that rents are stable and low, while developers can keep building to meet demand.

I'm not someone who thinks markets are always doing the best thing for themselves or others, but if private money can't figure out when and where it's good to build an apartment building, then what could we trust capital markets to be smart about? That seems like the lowest hanging fruit there is.

In places where there is enough demand for apartments that rent is high only due to regulatory constraint of supply--this might me much of the near North and West sides--dropping rents would probably be good for the city.

Housing is the only basic necessity that people cheer about when it gets more expensive. I know why that is, since so many of us own real estate ourselves, but it's weird when you think about it.

[llamaorama]

Originally Posted by the urban politician

^ You obviously have almost zero understanding of how the modern economy works.

Most property owners have debts on their properties that rely on rental income. If those debts go into default by rents dropping too low, a whole shitload of properties go underwater. A whole lot of wealth gets erased, banks go into crisis, and lending stops. When lending stops, the economy freezes.

So dropping rents are very bad news.

Isn't that the investors' risk to bear? Why should responsible investors be punished?

It's so cute, these guys are usually snotty Republican types who love small government. Then when they face trouble they run crying to the government.

Give me a break.

[Ryanrule]

Originally Posted by the urban politician

^ You obviously have almost zero understanding of how the modern economy works.

Most property owners have debts on their properties that rely on rental income. If those debts go into default by rents dropping too low, a whole shitload of properties go underwater. A whole lot of wealth gets erased, banks go into crisis, and lending stops. When lending stops, the economy freezes.

So dropping rents are very bad news.

aww, pooor wittle babies.

[emathias]

Originally Posted by the urban politician

^ It could.

An argument could be made that people are in subsidized housing perpetually because subsidized housing exists....perpetually.

I think the evidence points to there being too little subsidized housing rather than too much. Now, some who have it now should probably also receive some training/support in being able to move off of it, but there are still plenty of people who are homeless who legit need housing and don't get it because there isn't availability.

[jtown,man]

Originally Posted by Ryanrule

aww, pooor wittle babies.

No one is asking you to feel sorry for them, or did I miss something? He was merely explaining realities to you.

Your politics bleeds through. We get it, you hate rich people. I would like to remind you that zero of this development we talk about on here would take place without rich people or banks.

[Mr Roboto]

Originally Posted by llamaorama

Isn't that the investors' risk to bear? Why should responsible investors be punished?

It's so cute, these guys are usually snotty Republican types who love small government. Then when they face trouble they run crying to the government.

Give me a break.

Exactly. I dont develop properties, but I do own and rent out a couple of condos in south loop. It is the risk you bear. You cant assume the market will forever benefit you as a landlord. If necessary you may have to sell.

The system is already set up for property owners, to benefit us. I dont see why a slight rent drop would honestly impact landlords so greatly. You get most of it back in your tax return. Overall it may be better for the city in general anyway, as long as it isnt permanent and part of the cycle.

[Mr Roboto]

Originally Posted by jtown,man

No one is asking you to feel sorry for them, or did I miss something? He was merely explaining realities to you.

Your politics bleeds through. We get it, you hate rich people. I would like to remind you that zero of this development we talk about on here would take place without rich people or banks.

Many people who do this aren't even that rich though. Just some people with extra cash who took some risks.

Either way, rich people could get cycled out though every now and then. Its not like we should worship them or think they are any different than anyone else, or should get special treatment (newsflash: they DO get special treatment most times).

[Steely Dan]

evanston news:

14-story office tower proposed for library lot
By Bill Smith on November 17, 2016 - 5:59am


Plans for a 14-story office building to be built on the city-owned parking lot at 1714-20 Chicago Ave. were unveiled at the Evanston Economic Development Committee meeting Wednesday night.

Developer Conor Commercial submitted what city staff described as the only responsive proposal for the property, meeting the city's asking price for the property of $5 million.

full article: http://evanstonnow.com/story/real-estate...76360/14-story-office-tower-proposed-for

[Ryanrule]

Originally Posted by jtown,man

No one is asking you to feel sorry for them, or did I miss something? He was merely explaining realities to you.

Your politics bleeds through. We get it, you hate rich people. I would like to remind you that zero of this development we talk about on here would take place without rich people or banks.

lol you guys dont understand the upcoming generation.

thats ok. just go senile and retire to arizona.