IRR's Ron DeVries in the Chicago Tribune: Will the Fed’s Rate Cut Spark Chicago’s Next Wave of Development?
Sep 19, 2024
The Federal Reserve's recent interest rate cut could provide much-needed relief for Chicago’s residential developers, but challenges remain, says Ron DeVries, Senior Managing Director at IRR-Chicago.
"The whole pipeline is going dry due to the capital market conditions over the past 18 months," DeVries explained. While nearly 95% of downtown apartments are occupied, new developments have stalled, with far fewer units set to be completed in 2025.
DeVries cautions that despite the rate cut, banks remain hesitant, requiring developers to cover more upfront costs. "The real question is, what are the banks going to do?" he said, emphasizing that while lower rates may ease borrowing, they won’t solve all financial hurdles.
Still, there’s optimism. The cut could reignite interest in areas like Fulton Market, potentially bringing cranes back to the Chicago skyline.
Read more from Brian J. Rogal in the Chicago Tribune.
