Midwest Real Estate Developers Faces New Challenges

According to panel discussions held at the Midwest Builders Show earlier
this spring in Rosemont, IL, the Chicago Sun-Times reports that real
estate developers in Chicago and throughout the Midwest will need to
embrace new innovations to adapt to new market conditions:

Where to build is one of the biggest concerns confronting industry players.



"I believe we will see a continued strong trend in a combination of
residential, retail and commercial mixed-use projects," [Norman W. Nagel]
said. "Many municipalities are looking to redevelop their downtown
districts." That is also the case in many areas in Chicago.



"Some developers may need to team up with commercial builders and
retailers or other specialists in order to obtain mixed-use projects," he
said.



"Builders are also being encouraged by municipalities to build
communities, not just homes," said Phil Rovang, director of planning,
building and development for Lake County.

This analysis may bode will for Chicago condos, which are well suited for
inclusion in mixed use developments.



The needs of communities to develop infrastructure, the high costs for
building materials, and an increasing reluctance among lenders to extend
easy credit will all affect the Chicago home building industry. All of
these factors will tend to place restrictions on the further development
of Chicago real estate.