City-To-Suburbs Migration: Exploring The Future Of Chicago’s Suburbs At Bisnow’s Feb. 28 Event

Since 2020, Chicago has seen many city-dwelling residents choose to move to its more spacious suburbs. With Chicagoans still preferring a hybrid work schedule, many of them want to live in amenitized suburban spaces to enhance their quality of life.

Daniel Management Group, a Chicago-based multifamily investment and management company, is seeing more of its clients demand suburban rental properties with amenities that they can’t get in the city.

“The suburban market is very hot right now,” DMG CEO Roger Daniel said. “We’re seeing our younger clients migrate to the suburbs for more space in their apartment units, community spaces to enjoy their families and collaborative areas to engage with their colleagues.”

Daniel will speak at Bisnow’s Future of the Chicago Suburbs event on Feb. 28 at Bell Works Chicagoland, where he’ll be joined by other panelists discussing the future of suburban development in the area. Click here for details.

Bisnow spoke with Daniel about some of the trends in Chicago’s suburbs, the properties DMG is managing and how the company serves its suburban clients.

Bisnow: What trends are you seeing in Chicago’s CRE suburban market? 

Daniel: DMG manages a portfolio throughout Chicago and the surrounding suburbs, giving us deep insight into current trends and what prospective residents want. Regardless of where the apartment building is located, we are seeing a greater sophistication of both the unit finishes and amenities.

We are also seeing rental demand increasing in the suburbs, often driven by people downsizing and/or young couples and families leaving the city in search of suburban amenities including green space, outdoor areas with grills and fire pits, private entrances and garages. Since more people are working at least in part from home, there continues to be interest in work-from-home adaptations such as work nooks and high-speed internet connectivity. Residents are also increasingly asking for access to plug-ins for electric cars.

As most suburban towns have apartment supply constraints, we are also seeing Covid-era concessions dry up and significant rent growth. This is on top of additional opportunities for ancillary income through bundled services and more.

Bisnow: What inspired you to attend Bisnow’s Future of the Chicago Suburbs event? 

Daniel: DMG has been attending this Bisnow event for a few years, and it’s a date we look forward to annually. We love the opportunity to see people we know and meet new people in our field. It’s a great time to share our market knowledge and hear what others are experiencing.

Bisnow: As founder and CEO of DMG, what’s your take on some upcoming developments for Chicago’s suburban market? How is DMG a part of this growth? 

Daniel: We are still seeing significant portions of the population choosing the suburbs. As a result, Chicago’s suburban submarkets have been a big part of DMG’s growth over the last several years. More specifically, DMG has recently begun managing Morris Station in Mundelein, One Fifty Seven in Oak Forest and Prospect Place in Mount Prospect.

Morris Station exemplifies all the trends we are seeing, including high-end finishes, private exterior entrances with attached garages and locations near our Metra transit system. Residents can experience the privacy you expect in a single-family home, but with all the benefits of an apartment community.

One Fifty Seven is a community of luxury apartments and townhomes. Residents have incredible amenities located on-site including a fitness center, a coworking space, an event space and a coffee shop. Additionally, residents have access to a nearby Metra station and multiple nature preserves, giving the perfect balance of convenience and green space.

Finally, Prospect Place is in the heart of Mount Prospect and just steps from the Metra train. Amenities include a rooftop terrace, fitness center, coworking space, sky deck lounge and more. In addition, residents have easy access to local restaurants.

Bisnow: Do you think inflation, rising interest rates and the changes in the housing market will affect how people live, work, and play in Chicago? 

Daniel: Yes, we are already seeing the multifamily industry benefit from changes in the housing market. Purchasing a home has become out of reach for many due to high interest rates, high construction costs and supply constraints. Additionally, the uncertainty of the past few years has driven people to the rental market.

In return, we are seeing renters look for more space and the privacy of a townhome or a single-family rental. I expect many people will rent longer than in the past and may rent their entire lives.

Bisnow: What strategies does DMG use to help create a better experience for its clients in the suburban market? 

Daniel: While renters are seeking more space in suburban rentals, there is still a desire for a sense of community. Many of these suburban properties are investing in community amenities including fitness centers, coworking spaces and extensive outdoor spaces that include fire pits, grilling stations and pet runs. We’ve seen properties begin to turn underutilized retail space into building amenities such as doggy daycares and coffee shops. DMG also leverages community event spaces to host resident events like yoga classes and tasting menus to provide that neighborhood feel.

Bisnow: What do you see for the future of Chicago’s suburbs, and how will DMG continue to play a role in this developing sector? 

Daniel: One thing is clear: Suburbs are here to stay as a rental destination. There has been a fundamental shift in how many people live, work and what they want from their home, making rentals an ideal solution.

DMG will continue to advocate for options with high-end furnishings that give the space and privacy that prospective residents demand, as well as offer a range of community amenities to enhance their rental experience.

For more details on the event, click here.

This article was produced in collaboration between Studio B and Daniel Management Group. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to [email protected].

This article originally was published on Bisnow.