Chicago & Midwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
“Headwinds” Push Chicago Developers to Other Cities
Property tax increases and other factors are leading some of Chicago’s major home-grown developers to pursue projects in other cities even as they continue building here, the Chicago Tribune reported.
Those other concerns include ongoing city and state fiscal woes stemming from soaring pension obligations, along with potential Chicago policy changes including increased affordable housing requirements, rent control and tax-increment financing reform.
“We love Chicago but are super nervous about the headwinds Chicago faces,” David Carlins, CEO of Magellan Development, told the Tribune. “I would call it as difficult an environment from a capital standpoint as I’ve ever seen.”
At CA Ventures, John Diedrich called the inability to accurately project future property taxes as “one strike too many” for major investors such as pension funds and insurance companies.
“Most of our institutional investors have basically redlined Chicago,” Diedrich told the Tribune. “They are not going to deploy capital here.”
For comments, questions or concerns, please contact Paul Bubny
- ◦Financing
- ◦Development
