All Forum Posts by: David Kieta

I spend a lot of time at work thinking about "digital transformation"..... we're going through a physical transformation in terms of how ppl work and live and its impact to our physical commercial property impacting downtown office space, the banks that finance these places, the small businesses that rely on business commuters, the infrastructure facilitating commuters

Chicago is not unique - Indy, Atlanta, etc - https://www.wsj.com/real-estate/commercial/even-a-booming-ec...

Thank you for sharing! Yes, the doom loop is not unique to Chicago. This is a national concern.

0 Votes

Chicago, Illinois

According to this article, Chicago home prices are rising with the "steepest annual price growth" (4.4%). This is interesting. During the initial COVID home price boom, Chicago home prices increased about 18-21%. This was quite modest compared to cities in the South East, North West, and South West. Cities in those areas saw home price increases of 50-100%, and in some cities over 100%. Now cities like Las Vegas are seeing a price decline (7.2%).

This is great news for sellers, but bad news for homeowners that are staying put. It will be difficult to appeal your property taxes with no supporting sales evidence. Homeowners will need to use an equity/uniformity argument.

https://markets.businessinsider.com/news/commodities/home-pr...

2 Votes

Chicago, Illinois

Quote from @Carlos Ptriawan:

Quote from @Jaron Walling:

@David A Lisowski The ideal time to get into REI was yesterday. Even with high prices and higher rates yesterday was the best day. It's a finite resource. Either you chase it or someone else does.

When I describe the last time I rented it feels like I got ran over for 5 years. The movers and shakers (investors) are all over the place but you can't see them. The investors change neighborhoods. I was just renting and stuck on a path. Eventually I escaped it.

The ideal time to get into Real Estate is when there's a crash LOL. Now the crash is in office and retail space.

I would buy bonds, CRE REIT, CEF and not look at it for 5-10 years because it's guaranteed to be profitable if I purchase now.

I am very unfamiliar with CRE, REIT, and CEF. Can I purchase these on my Fidelity investment account?

0 Votes

Chicago, Illinois

Quote from @David A Lisowski:

@Scott Trench

I'm wondering, too. Can we hit an ideal time to invest? My wife and I already have a few ideas picked out, but have done 0 market research yet.

I feel like the ideal time is different for everyone. Too many factors to consider.

1 Vote

Chicago, Illinois

Quote from @Scott Trench:

I wonder if Chicago isn't a great place to invest because of this dynamic, and won't be one of the better opportunities in the country in 2024 as a result.

If I was advising an investor, I would say don't invest in Chicago proper. Look to cities like Naperville, Aurora, and Joliet.

2 Votes

Chicago, Illinois

Quote from @Johann Villalvir:

Depends on how easy they can transformed into residential units

We are having a similar discussion here:

https://www.biggerpockets.com/forums/921/topics/1144234-the-...

1 Vote

Chicago, Illinois

Quote from @Scott E.:

Quote from @Jaron Walling:

Quote from @David Kieta:

@Jaron Walling I agree with you. However, I wonder what will actually happen. If effective plans/investments are not made now, major cities will see growth slow down drastically. On the other hand, cities like Nashville cannot keep up with the growth.

Honestly, I don't think the government can fix the situation.

Indianapolis can't keep up with the growth either. YES, I agree the government can't fix the situation. In fact they make it worse in specific situations. We need housing in these locations. Empty building that could be repurposed makes sense but only at the right price.

A way the government can get involved is in the form of grants or tax breaks for developers who are repurposing old vacant office buildings in areas that need more residential units.

This is happening a bit in Manhattan, but it has been so expensive to repurpose that the finished product ends up being luxury apartments/condos that only the wealthy can afford.

If the local government wants more middle class housing they need to get involved and help the developers achieve that.

(btw I'm with you - we should try to save these old historic buildings where we can. It's just tough when they were built 100 years ago as office buildings. Reconfiguring the layouts to residential AND bringing these old buildings up to code is a big undertaking.)

I think Chicago/Cook County government will have a difficult time with this. They should be incentivizing the middle class to move back to the city. However, if they give developers property tax breaks and then turn around and put the burden on the residents already in the city people will leave in greater numbers then they already are.

The local government need to spend less money and decrease the budget for once.

0 Votes

Chicago, Illinois

Honestly, I don't think the government can fix the situation.

0 Votes

Chicago, Illinois

I think you are correct. Vacancy will not improve. Companies leasing the space cannot force their employees to return to the office, nor should they if employee productivity increases when they work from home.

As for repurposing the space, I think it can be done with the right plan and investors, but it is a huge gamble to take.

Check this article out. An office building in the West Loop in Chicago sold at nearly a 60% discount. https://www.bisnow.com/chicago/news/office/portland-investor...

0 Votes

Chicago, Illinois

60% off office buildings! What is next BOGO deals?

https://www.bisnow.com/chicago/news/office/portland-investor...

0 Votes

Chicago, Illinois

All Forum Posts by: David Kieta

David Kieta has started 7 posts and replied 22 times.

Post: The Doom Loop in Chicago

Post: National Home Prices are on the rise. . . . . . Again.

Post: The Doom Loop in Chicago

Post: The Doom Loop in Chicago

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Post: Are office buildings worth the investment?

Post: The Doom Loop in Chicago

Post: The Doom Loop in Chicago

Post: The Doom Loop in Chicago

Post: Are office buildings worth the investment?