Chicago real estate market ranked in Emerging Trends in Real Estate report - Jean Pierre Bansard Commercial Real Estate Development Firm.
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Chicago real estate market ranked in Emerging Trends in Real Estate report

Chicago real estate market ranked in Emerging Trends in Real Estate report


In short, the Chicago market is a mixed bag, says the survey by PwC and the Urban Land Institute. The report points out that investors have poured money into its industrial and apartment sectors. But it knocks the area for its “widely publicized challenges,” including crime and fiscal problems stemming from underfunded public pensions.

“It is a city with both great strengths and great weaknesses,” the report says. “One thing that Chicago has going for it is its job density. A recent Brookings Institution study showed that 90 percent of the increase in post-2005 job density occurred in just four metro areas: Chicago, New York City, San Francisco and Seattle. Whether this will eclipse Chicago’s reputation for gun violence remains to be seen.”

Chicago also scores poorly as a market for homebuilders, ranking 78th out of the 80 metro areas for “homebuilding prospects.”

But the report gives suburban Evanston a shout-out, citing it as an example of “hipsturbia”: suburbs that have a vibrancy and cool factor, along with an abundance of retail, restaurants and recreation.

It helps that Evanston is a college town, with Northwestern University providing “a constant supply of young adults.”

“Rooftop bars, Lake Michigan beaches, downtown shopping and access to and from the Chicago Loop via the Chicago Transit Authority’s Purple Line help round out the elements of coolness in one of the Midwest’s oldest suburbs,” the report says.

PwC and the Urban Land Institute published the 103-page report, the 41st annual “Emerging Trends” survey, based on responses from and interviews with investors, developers, fund managers, brokers and other real estate professionals.

Many people in the business have profited handsomely over the past several years, as the strong economy has lifted occupancies, rents and property values across the country. The question hanging over the industry is what will happen when the good times end.

Few expect a painful crash, like the last one, in 2008-09, in part because lenders and developers have not gotten carried away like they often do at the tail end of booms.

“Reinforcing the optimism about real estate’s ability to withstand a recession is satisfaction that the property sector’s discipline in this recovery means that ‘this time it won’t be our fault’ if the economy falters,” the report says. “Any warning signs are arising from causes that real estate has little control over.”

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Real Estate Development Jean Pierre Bansard Real Estate Developer

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