Gail's slides from her presentation.

2. #CAROutreach
SPEAKER
GAIL LISSNER,
CRE, SRA
Vice President of Appraisal
Research Counselors

3. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
Gail Lissner, CRE, SRA
312 565 3423
glissner@appraisalresearch.com
Appraisal Research Counselors
400 East Randolph, Suite 715
Chicago, IL 60601
Downtown Chicago Market Update...

4. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
50.0
52.0
54.0
56.0
58.0
60.0
62.0
64.0
66.0
68.0
70.0
72.0
74.0
1989
1991
1993
1995
1997
1999
2001
2003
1Q05
3Q05
1Q06
3Q06
1Q07
3Q07
1Q08
3Q08
1Q09
3Q09
1Q10
3Q10
1Q11
3Q11
1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
1Q15
3Q15
1Q16
3Q16
Chicago National
Chicago Homeownership Trends…
Chicago MSA 3Q16 – 65.1%
HUD changes agency
targets for affordable

5. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
Downtown New Unit Deliveries…

6. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
DT Rental Vs. Condo Deliveries….
100%100%100%
39%
0%
49%
13%
0%
21%
24%
0%
22% 24%
10%
23% 23%
8%
32%
28%
84%
100%100%
94% 96%
93%
97%
94%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
proj
2017
proj
Rental Unit Deliveries - % of Total Deliveries
1990-2017 proj.
(c) 2016 Appraisal Research Counselors, AllRightsReserved
2011-2017: Rental units has comprised 93-100% of the total deliveries!

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ARC
Appraisal Research Counselors
Neighborhood Apt Development…
11,500+ Units Proposed/Under
Construction

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ARC
Appraisal Research Counselors
Milwaukee Ave. Corridor – Prop/UC…
$3.00 PSF:
developers’
target

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ARC
Appraisal Research Counselors
The Downtown Rental Pipeline…
Green = In Lease Up
Red = Under Construction

10. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
DT Condo/TH New Development Net Contracts…

11. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
DT Condo Unsold Developer Inventory…
0
1,000
2,000
3,000
4,000
5,000
6,000
(c) 2016 Appraisal Research Counselors, All Rights Reserved
Gold Coast
Loop
Near North
River North
Streeterville
South Loop
West Loop

12. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
DT Condo/TH Unsold Developer Inventory…

13. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
DT Condo/TH Unsold Developer Inventory…
76%
over
$700+
PSF

14. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
DT Condo/TH Unsold Developer Inventory…
19%
6%
26%
44%
5%
Units in the West
Loop
Units in the South
Loop
Units in River North
Units in the Loop
Units in the Gold
Coast

15. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
96 DT Buildings 17,000 Units Price Changes…
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2007 2008 2009 2010 2011 1/2
2012
3/4
2012
1/2
2013
3/4
2013
1/2
2014
3/4
2014
1/2
2015
3/4
2015
1/2
2016
Sales Price PSF Trends in Buildings Developed
Since 2004
(c) 2016 Appraisal Research Counselors, All RightsReserved
Gold Coast
Loop
Near North
River North
Streeterville
South Loop
West Loop

16. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
2004+ Deliveries – Sales PSF Since 2007…

17. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
Downtown Condo Price Trends…

18. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
Condo De-conversions…
835 W. Barry
115 condo units
Avg 895 SF
Being mkted by CBRE
2625 N. Clark
133 condo units
Sold for conversion to
rental
2518-40 N. Lincoln
30 res. condo units/
New rental building under
construction with 200 apts

19. www.AppraisalResearch.com
ARC
Appraisal Research Counselors
Rental development slowing due to
 Short term imbalance in supply and demand
 Rising interest rates
 Construction costs escalating
 Rent growth slowing – renewals
 Real estate taxes increasing
 Land sellers in denial
 ARO adding cost to development
Modest increase in condo development
 Greater diversity in product type
 Gradually increasing project sizes
 Continued development in neighborhoods
2017 Trends…