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| 500 Lakeshore Drive Apartments, Chicago,IL |
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| Randy Fifield |
CHICAGO, IL (Dec.
4, 2013) – Following an exciting 2013 in which the for-sale market
continued its steady rebound while the apartment market stayed white-hot, 2014
promises to be an interesting year as low for-sale inventory, rising interest
rates and an influx of new rental units converge in a crossroads for
residential real estate.
“There is still tremendous competition in the
rental market, but luckily for consumers they have more choices than ever,”
said T.J. Rubin, managing broker of Fulton Grace Realty.
“For new
projects delivering in 2014, it all boils down to either offering a no-frills
building with great prices, or going big on amenities and services that offer
renters a terrific lifestyle.”
Meanwhile, condo
developers and home builders point to still-low interest rates, low inventory
and high demand as encouraging factors for new development in 2014.
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| Jeanne Martini |
In the for-sale market, David Wolf,
president of Related Realty, predicts there will be an increase in new listings
in 2014 as sellers realize the appreciated value in their homes and decide to
enter the market.
“Listings under
contract will increase and market time will be down,” said Wolf. “And that’s
good news for the market rebound. With more inventory available for buyers to
choose from, we will continue to see restored confidence in residential real
estate.”
Against the unique backdrop of this
confluence of market factors, Chicago-area real estate experts weigh in with
the following top real estate trends for 2014:
1.) At Your
Service: A leader in multifamily
residential development, Related Midwest unveiled its first rental tower
in Chicago earlier this year – 500 Lake Shore Drive – and ushered in a
whole new level of apartment services to the Windy City.
Residents of 500 Lake Shore Drive found
themselves with access to a Related Personal Assistant, Resident Service
Specialist, Tech Concierge, 24-hour white-glove doorman and a lobby attendant.
This full service staff, and perhaps even more, is also expected to be
available at 111 W. Wacker, the developer’s new Chicago apartment tower
set to open in summer 2014.
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| Barbara Gaffen |
“One reason people
continue to be drawn to the rental lifestyle is they see or hear about these
amenities and services that make their life easier – services that are really
more what they receive at a high-end hotel,” said Curt Bailey, president
of Related Midwest.
“It’s common now to have apartment amenities like a
high-tech fitness center or theatre room, but someone on call to fix your
internet connection or plan a catered dinner party is more rare, and certainly
seen as an added value by our renters.”
Another high-end
Chicago apartment tower set for delivery in 2014 with an emphasis on its renter
services is Catalyst by The Marquette Cos. The building will feature
Marquette's signature We C.A.T.E.R. concierge program that offers residents
everything from simple perks like free coffee and tea to arranging for
dog-walking services and resident dry cleaning drop-off and pick-up.
2.) Design for All:
In May 2013, Fifield Companies tapped the prestigious design firms of
Adrian Smith + Gordon Gill, Design for a Cure and Morgante Wilson Architects
for a special Designer Showcase “pop-up model” event at its new K2 apartment
tower. The Morgante Wilson model was so well received, Fifield partnered
with the firm to design all models and common spaces at E2, its new rental
development in Evanston, Ill., which will open in 2015.
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| Elissa Morgante |
“Residents are increasingly sophisticated in
their aesthetic,” said Randy Fifield vice chairman and principal of
Fifield Companies. “Even if they’re not using a name-brand designer in
furnishing their own home, they appreciate being able to enjoy a high level of
design in their building.”
In downtown Chicago, Related Midwest
partnered with revered Kara Mann Design on models at 500 Lake Shore Drive, its
luxury rental tower that opened this spring, and is also working with Mann for
111 W. Wacker, opening in summer 2014.
The developer also tapped Simeone Deary
Design Group, known for its hospitality work, to design models and all amenity
spaces at The Grant, a luxury condo tower in Chicago’s South Loop.
“One way we stand
out and communicate the lifestyle offered at our buildings is through the image
we present in our common areas and models,” said Curt Bailey. “By
working with star designers, we add a certain cache to the building and the
amenity spaces that are ultimately part of residents’ homes.”
3.) Big Lots: When it comes to home sites in 2014, many
builders predict buyers will choose from the super-sized menu.
“We see the desire
for large home sites stemming from a variety of factors,” said Jeanne
Martini, director of marketing for Kinzie Group.
“First, many buyers felt
confined in their home during the recession, so now they’re looking for more
space and privacy.
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| T.J. Rubin |
Second, buyers want more flexibility in the design of their
home, and you have fewer limitations with a larger lot.”
Kinzie is developing
the Enclave of Heritage Estates in Lake Barrington, where home sites go up to
four acres.
Also betting on “big lots” is Lexington
Homes, which in January will re-launch Woodleaf at the Sanctuary Club in
Kildeer, Ill., where sites go up to three-fourths of an acre.
Jeff Benach, president of Lexington Homes, said buyers are thinking long term
and are willing to invest in extra land. “Today’s buyers plan to stay in their
homes longer so they want a larger yard to go with a larger home. Additionally,
a larger parcel of land gives homeowners the option to make changes to their
home to fit their needs in the future.”
And in St. Charles, buyers can find one-third
acre or larger home sites at Meritus Homes’ semi-custom community The
Reserve of St. Charles.
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| David Wolf |
“Buyers spoke, and
we listened,” said Brian Brunhofer, president of Meritus Homes. ”These
are the largest home sites we’ve offered in three years. There’s room for a
three-car garage, spacious deck, extensive landscaping and even a pool. The
possibilities are pretty endless.”
4.) Talk of the
Town(home): “Renting has become the preferred lifestyle choice for many, which
has created a shift in the demographics of the ‘typical’ renter,” said Darren
Sloniger, managing director of acquisitions for The Marquette Cos., which
opened its rental townhome community, Randall Highlands in Aurora, Ill.
six months ago.
“Not only will we
see more families, professionals and downsizers opting to rent, but more people
planning for long-term rentals. As such, townhomes are especially attractive to
these groups because of their extra space.”
Barbara Gaffen, co-CEO of Prime Property Investors, owner and property manager
of Arbors of Brookdale in Naperville, Ill., agrees, citing a waiting
list for their largest townhome-style plan at the community. “It’s especially
popular with families,” she said. “In fact, about 25 percent of our residents
have young children.”
Also expecting
strong demand for rental townhomes is Anthony Rossi, Sr., president of
RMK Management Corp.
“We’ve had townhomes
as part of our management portfolio for years, and they always see high
occupancy,” he said.
“Given the trepidation many still feel about becoming a
homeowner, rental townhomes should do well next year as they’re a smart alternative
to buying a single-family home.”
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| Curt Bailey |
T.J. Rubin of Fulton Grace Realty is also anticipating
further growth in 2014. "The increase in townhome rentals we saw this year
is linked with the condo rental boom of the last few years, as many condo and
townhome owners continue to be stuck in their homes and need to rent them
out," he said.
MACK Companies, an
REO-to-rental specialist, also took note of this trend by recently adding 30
rental townhomes to the firm's portfolio of primarily single-family rental
homes.
"When the
housing boom was at its peak, many people were buying single-family homes in
far suburban communities to get the most space for their money,” said Eric
Workman, vice president of sales and marketing for MACK.
“Now, many find
themselves going back to the city to be closer to work." Workman explained
that townhomes are more common in areas near or inside the city than
single-family homes, as it’s a way to maximize use of a prime location. Workman
added, "We anticipate the townhome rental trend to continue through the
first half of 2014, with a gradual move toward townhome purchases."
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| Jeff Benach |
Two other developers
taking note of this trend are Kinzie Group, which will be grand opening rental
townhomes at The Oaks of Vernon Hills in 2014, and Fifield Companies,
which will include 12 rental townhomes as part of its E2 rental development in
Evanston, Ill., which opens in 2015.
5.) À la Carte
Building: In 2014, builders will offer buyers of new-construction homes an even
broader menu of options – and even some things not on the menu at all.
“Buyers in today’s
market don’t want the typical ‘Option A, B or C’ model of home building. They
want a home that is unique to their lifestyle,” said Brunhofer in reference to
Meritus Homes building custom and semi-custom homes throughout the Chicago
area.
“While custom homes will always be in demand, semi-custom
homes are rising in popularity as they are a good compromise for some buyers’
budgets and timelines as buyers can still add original touches to a design.”
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| Eric Workman |
Martini agrees that 2014 will bring even
stronger demand for custom and semi-custom homes, like those offered at Kinzie
Group’s Lake Barrington community, Enclave of Heritage Estates.
“We really put
buyers at Enclave in the driver’s seat by offering two ways to buy – either
through our Home + Lot program, where we’ll help buyers create their ideal
home; or they can purchase one of our sites and bring in any builder they
wish,” she said.
Buyers will also find a great deal of
flexibility in the estate-style single-family plans at Lexington Homes'
Woodleaf of Sanctuary Club in Kildeer.
"Rather than
making buyers adjust to fit the plans we offer, they can choose from a wide
selection of floor plans and then customize the plans however they please within
village ordinance and architectural guidelines," said Benach. "It's a
total departure from what we do at our other communities because each home is
pretty much designed from scratch."
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| Anthony Rossi Sr. |
6.) Phone Home:
Earlier this year, a joint study from the National Association of Realtors and
Google noted 90 percent of homebuyers searched online during their home-buying
process, and approximately one-fifth of real-estate related searches were
conducted on mobile devices. In 2014, look for more real estate firms to create
apps to make it easier for viewers to find properties on their phone or tablet,
putting property listings – literally – at their fingertips.
Rubin noted, "Fulton Grace closely
tracks renter and buyer behaviors, and we find they are increasingly using
tablets and smart phones in home searches. We expect 30 percent of our traffic
next year to come from new-home searches via mobile phones and tablets, so
we're ramping up a new mobile website now."
MACK Companies is redeveloping its website to
ensure clients can easily access information via their phone or tablet.
"Today's consumer is so technically advanced, they expect all information
about a property to be available when and where they want it," said
Workman. "If prospective buyers or renters can’t view a property on their
phone, they're going to move on to the site that does."
7.) Year of the
Dog: The Chinese New Year calendar may say 2014 is the Year of the Horse,
but it is poised to be the Year of the Dog for real estate developers who are
seeing increased demand for pet-friendly amenities in new multi-family
buildings.
“One thing came
through loud and clear when we researched the types of amenities Chicagoans
want most in a rental building – they love their pets,” said Bailey in reference
to Related Midwest, which in 2013 introduced Dog City, an on-site
pet-care facility at 500 Lake Shore Drive.
Related will be including a similar amenity
at a second Chicago rental tower opening in 2014. “Dog City is also another way
we elevate our service platform for residents to an entirely new level,” Bailey
added. “We’re giving them the convenience of top quality pet care right in the
building, and also addressing an area of their lives that is extremely
important to them.”
Other Chicago apartment towers making pet-friendly
features a top priority are K2 by Fifield Companies, which features a one-half
acre, fenced-in dog park adjacent to the building, and partners with a
third-party vendor to provide pet care services; and 73 East Lake by M&R
Development, which will deliver in Chicago in 2014 and offer renters an on-site
pet spa plus help arranging dog walkers and pet sitters.
Color Trends: For 2014, Elissa Morgante,
principal at Morgante Wilson Architects, sees two colors on the horizon: teal
and yellow.
As an award-winning architect and interior designer for some of the
most beautiful homes in Chicago and the North Shore, Morgante has noticed an
increased interest in bold hues.
"Teal and yellow are both elegant, yet
upbeat colors. Plus, they're easy to use as accents with both warm and cool
neutral colors,” she said.
Morgante predicts
more yellow will shine through in bedrooms and kitchens because of its
uplifting effect, while the calm and tranquility associated with teal can set
the tone for a home in entry spaces.
For a complete copy of the company’s news
release, please contact:
Kim Manning, kmanning@taylorjohnson.com, 312-267-4527
Julie Liedtke, jliedtke@taylorjohnson.com, 312-267-4523
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