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In terms of suffering, I'm more worried about the loss of support workers and supporting businesses over the long-term. Especially in a place like Chicago where
by erosenbe0 6y ago
In terms of suffering, I'm more worried about the loss of support workers and supporting businesses over the long-term. Especially in a place like Chicago where the installed base of offices is much much larger than SF, and where portions of the future sales tax revenue has already been securitized and sold to investors.
- deleted 6y ago[deleted]
- reaperducer 6y agoDevelopers in Chicago are building as fast as they can right now. It's counterintuitive to people on the outside, but from what I read, it's because labor, material, and capital are dirt cheap. So the developers are putting up new skyscrapers and other mega-developments so they're in a good position to take advantage of the recovery. A new 57-story office tower opened just last week: https://www.chicagoarchitecture.org/2020/10/18/a-new-skyscraper-opens-in-the-loop/ https://www.chicagoarchitecture.org/2020/10/18/a-new-skyscra... Dozens of new residential towers have been announced, and at least a dozen are under construction, including one that's almost finished at 101 stories tall. https://www.chicagoarchitecture.org/2020/10/05/sit-back-breathe-deep-and-enjoy-the-vista/ https://www.chicagoarchitecture.org/2020/10/05/sit-back-brea...
- jtbayly 6y agoI was under the impression that building materials are very expensive right now.
- lotsofpulp 6y agoYou are correct, metal prices are up 3x and wood at least 2x. Building might be happening due to demand, but not because the materials are cheap. It might be possible that labor in big cities might be cheaper, but I doubt it.
- swsh 6y agoI think you will find that material prices are <20% of the capital cost.
- scurvy 6y agoYep, soft wood prices are up 20-25% right now.
- pbourke 6y agoMoney is cheap now.
- mariojv 6y agoAbsolutely. Check out the price of lumber: https://www.bloomberg.com/news/articles/2020-08-07/timber-touches-record-with-lockdowns-spurring-renovation-revival https://www.bloomberg.com/news/articles/2020-08-07/timber-to...
- jonahbenton 6y agoExactly the same in NYC. Real estate investment is planned on 50-100 year basis. We're in for a 3-5 year blip from a utilization perspective, but on longer timeframes, now is really just a great time to add to the capital base.
- madeofpalk 6y ago> A new 57-story office tower opened just last week Surely this didnt start or finish as a result of the last 6 months?
- Thorrez 6y agoIf the sales tax has been sold to investors, won't that be good for the city? It would mean the investors would lose out, not the city.