Commercial Property News - October 2008 - (Page 16)

MARKET INTELLIGENCE CHICAGO MARKET PROFILE Topsy-Turvy Imbalance of Supply Flips Chicago Condo Market on Its Side By Eugene Gilligan T he credit crunch is taking its toll on Downtown Chicago’s condominium market, as developers and buyers alike encounter financing challenges. Most of the slowdown is still to come, though expectations are for health in the long run. The market has grown exponentially during the past eight to 10 years, said Appraisal Research Counselors vice president Gail Lissner.But after strong sales in 2005 and the first half of 2006, problems have risen alongside the condo towers. “We have seen greatly diminished sales velocity.”At the same time,deliveries are speeding up. During 2008, just over 4,900 units will have been delivered Downtown, 75 percent of them either sold or under contract, according to Appraisal Research. Next year, 4,600 units are expected, 60 percent sold or under contract. The spike in development springs from suburbanites who are seeking part-time in-town residences,plus young professionals,students, Empty Nesters and even fami- lies.Apartment Realty Advisors sales agent Susan Lawson noted that Downtown residences no longer serve only the trendy elite, owing to the easy commute and retail options. Curving Upward (Downtown Chicago* deliveries of townhouse & new-construction & adaptive-reuse condominium units) 6,000 5,000 New Units B B B B B B B B B B B B 4,000 3,000 2,000 1,000 0 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08† '09† * Source: Appraisal Research Counselors Loop, Gold Coast, River North, Streeterville, West Loop & South Loop † includes units currently under construction Sweeten your construction lending deals with Southern Hospitality. 10th Annual Seminar: Strategies for Success in Construction Lending December 2-4, 2008 The Ritz-Carlton, New Orleans The premier 2-day educational and networking event for construction lenders! Have you or your company recently received coverage in Commercial Property News? www.cpnonline.com Borrower’s Motto: Be Creative __page 18 Net Lease Players Pair Off page 20 U.S. Investors Dream of Dubai __page 25 Conference Highlights: The Commercial Real Estate Authority September 2008 What’s Your Next Move? Can Previous Cycles Still Provide Insight to Succeed in Tough Times? page 16 Place your press directly inin the hands of Place your press directly the hands of those who matter most—your customers those who matter most—your customers and prospects with custom reprints from prospects with custom reprints from Commercial Property News. CommercialProperty News. The YGS Group is the authorized provider of custom he YGS Group is the authorized provider of custom reprint products from Commercial Property News. reprint products from Commercial Property News. REGISTER ONLINE TODAY AND SAVE! 800.290.5460 I cpn@theYGSgroup.com 16 Commercial Property News • October 2008 • www.cpnonline.com http://www.SSCLseminar.com http://www.cpnonline.com http://www.granitecm.com http://www.SSCLseminar.com http://www.cpnonline.com

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CPN - October 2008 Contents Starting Line Industrial Data/Analysis Conferences Chicago Market Profile Finance International Title Insurance Brokerage Corporate Report

Commercial Property News - October 2008

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