THE FIRST FORECAST

We know those words make most Chicagoans think of snow, but we’re talking about what members of ULI are expecting in 2012. ULI’s Dean Schwanke, here with Related’s Curt Bailey, predicts '12 will be a grind, but not as bad as '09 or '10. Foreign investors and private equity are returning to the marketplace but mostly concentrating on big cities and steady property types, like multifamily and industrial. Curt is working on developing 1,000 new apartments next year (500 at the former Shangri-La site and another 500 at 500 N Lakeshore Dr). Those will account for just a fraction of the 5,000 that are in development in the CBD. Related has redesigned the former hotel tower at the Shangri-La to be more efficient and rectangular, although no one has seen the actual renderings yet.
JLL’s Keith Largay anticipates those several thousand units could push the current maximum for Chicago apartment rents up from its traditional $3/SF. Metlife’s Betsey Clark says her company is going to continue to be the “vanilla investor,” picking up mostly Class-A office propertiesin steady markets with good leasing. But just because it's vanilla doesn’t mean it doesn't use sauce on its investments. There’s a chance that a promising property outside those criteria could get a chance at Metlife.
 
We also snapped Cassandra Francis with the CTA’s William Trumbull. William’s biggest project is leasing up lots of retail spaces at L stops throughout the city. Popular retailers include smoothie maker Maui Wowi at the Belmont stop and Rockito’s, an all-night taco bar, at the Wilson Red Linestop. William tells us retail’s purpose is threefold: it brings in money for the CTA, provides an amenity for the neighborhood, and gives each L station an extra sets of eyes to make public transit safer. We also said bon voyage to Cassandra: she’s escaping the Chicago winter by travelling to New Zealand for the entire month of December. Bring us back a kiwi!

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Related Topics: Curt Bailey , Dean Schwanke , New Zealand
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