After many years of stops and starts, the Chicago construction market is finally experiencing a sustained recovery. In 2015, employment in Chicago rose as 6,500 jobs were added to Chicago’s construction sector. The annual growth rate of 3.9 percent was the highest among the areas studied.
How can you benefit from the growing market? Here are few things to consider:
- Apartments: Nearly 8,000 apartments are expected to be completed by 2016 to meet demand for multifamily housing. To cash in, consider working with a local firm who understands not only the Windy City but what consumers are looking for – and can help you beat the competition for consumer dollars. . Not only are micro-dwellings popular in Chicago, features such as landscaped roof decks, fitness centers, covered parking and media centers should be considered in your build.
- Redevelopment: Close to Chicago’s core are a number of small- to mid-level buildings that are prime targets for redevelopment. The city’s zoning even grants properties built within 500 feet of a bus stop or train station a 1:2 parking ratio to encourage denser development. This can help you cut costs (off-street spaces in structured parking can run $20,000 apiece) and attract families interested in living the car-free life. Look for sites close to the nearer West and South Sides CTA stations.
- Boutique Hotels: The hospitality industry is growing, especially with boutique and lifestyle hotels. These unique developments, such as the Chicago Motor Club, are stimulating tourism and offer a more intimate, local experience. Breaking into this market requires experience in both multi-unit housing and hospitality so make sure to partner with a design/build firm wisely.
- Costs: Chicago’s construction material costs, especially glass and pre-fab materials, have been on a steady rise. A general lack of availability is pushing greater importance on the preconstruction phase to ensure your project stays on target and on budget. Consider working with a construction firm that offers preconstruction services like feasibility studies, value engineering and analysis to get the most for your money.
Before you break ground in Chicago, make sure you partner with a construction firm who truly lives and breathes the city. At Lenox Hill Construction, the Chicagoland area is our home and we can help you build your next project here successfully. To find out more, call us at 800-580-6499 ext. 7 today.