Saturday, September 17, 2005
Lofts In the Chicago Real Estate Market—It’s Not the 90s Anymore
Lofts emerged on the Chicago real estate scene more than eighteen years ago. Demand for Chicago lofts is still a part of the current market as developers seek to satisfy the needs of young professionals who are looking for more affordable urban Chicago properties. That translates to units at $200,000 or less, the price level where demand is the strongest.
Lofts are still popular in areas like Bucktown, Lakeview, Lincoln Park and Ravenswood because of the wave of downtown rehabs that took place in the late 1990s—what might be described as Chicago lofts’ Golden Age. Office-to-residential projects defined the market in the late 90s when nearly a dozen high-profile Chicago properties were completed downtown.
Residential conversions have decreased. Construction costs have gone up, and sales rates for residential Chicago real estate have slowed considerably, reflecting the decrease in demand.
Chicago lofts are a significant part of the market, but they are no longer being developed at the same rate. For some time there was an abundance of developments, then inventory began to outpace demand. There are plenty of existing Chicago lofts, but we can safely say residential conversions won't take place on the scale they did ten years ago without a large increase in buyers looking for affordable Chicago properties that offer the unique benefits of a loft.
Lofts are still popular in areas like Bucktown, Lakeview, Lincoln Park and Ravenswood because of the wave of downtown rehabs that took place in the late 1990s—what might be described as Chicago lofts’ Golden Age. Office-to-residential projects defined the market in the late 90s when nearly a dozen high-profile Chicago properties were completed downtown.
Residential conversions have decreased. Construction costs have gone up, and sales rates for residential Chicago real estate have slowed considerably, reflecting the decrease in demand.
Chicago lofts are a significant part of the market, but they are no longer being developed at the same rate. For some time there was an abundance of developments, then inventory began to outpace demand. There are plenty of existing Chicago lofts, but we can safely say residential conversions won't take place on the scale they did ten years ago without a large increase in buyers looking for affordable Chicago properties that offer the unique benefits of a loft.
Comments:
<< Chicago Lofts Bulletin
The City of Peoria is looking for a few good loft developers
We have a number of locations and buildings next to major employers and with a view of our great riverfront that are prime for redevelopment. Our city is part of the second largest metro area in Illinois, and is the second most densely developed downtown. We need some quality new neo traditional development and loft conversion to match the great downtown.
The Med-Tech District is on our Main Street next to our downtown. It is located next to Bradley University, the University of Illinois Medical School, the OSF Hospital, the Methodist Hospital, the National Agricultural Lab, and downtown.
Another area consists of large old well built warehouses immediately south of downtown and the Corporate Headquarters of Caterpillar, and next to the River. The area has a great deal of character, and will become a quality development overlooking our river and lake and next to our downtown, the second most densely developed downtown in Illinois.
Several developers have done very well with loft conversion buildings that are sold out, but we need a major push from a large firm. We need to continue the loft conversion effort, but we also need some quality new construction.
Thank you for your consideration.
Craig Harlan Hullinger AICP
Director of Economic Development
309 494 8639
chullinger@ci.peoria.il.us
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We have a number of locations and buildings next to major employers and with a view of our great riverfront that are prime for redevelopment. Our city is part of the second largest metro area in Illinois, and is the second most densely developed downtown. We need some quality new neo traditional development and loft conversion to match the great downtown.
The Med-Tech District is on our Main Street next to our downtown. It is located next to Bradley University, the University of Illinois Medical School, the OSF Hospital, the Methodist Hospital, the National Agricultural Lab, and downtown.
Another area consists of large old well built warehouses immediately south of downtown and the Corporate Headquarters of Caterpillar, and next to the River. The area has a great deal of character, and will become a quality development overlooking our river and lake and next to our downtown, the second most densely developed downtown in Illinois.
Several developers have done very well with loft conversion buildings that are sold out, but we need a major push from a large firm. We need to continue the loft conversion effort, but we also need some quality new construction.
Thank you for your consideration.
Craig Harlan Hullinger AICP
Director of Economic Development
309 494 8639
chullinger@ci.peoria.il.us
<< Chicago Lofts Bulletin
