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Originally Posted by SamInTheLoop
^ That’s right. They are clearly not necessary economically. That is not to say there is no market for them. Also, look at the taller recent luxury resi towers in NY….littered w examples of no or very minimal private outdoor space. And that’s in a somewhat better climate than Chicago. They’re just not necessary. One thing you have to remember is that real estate development to this day remains to a great degree individual/personality/ego-driven. Tons of cowboys out there who make important large capital decisions guided by their gut. This isn’t some sophisticated big data analytics industry folks - in large part still. Often times, the numbers are not being crunched. A developer likes balconies, or he thinks his prospective buyers/tenants want/need them based on anecdote, or his daddy who was also a developer always included them, then balconies it is. Not uncommon for development to still be that unsophisticated.
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I do think there is a contingent of buyers and renters who view not having a private balcony as an absolute deal-breaker, and developers are wary about turning those people away.
A luxury tower can absolutely succeed without tons of individual outdoor space (One Bennett, OG Tribune Tower, 401 Wabash), but it's definitely something developers consider.
Personally I'm torn on the issue. I like to grill, but I also realize that most Chicago balconies are eyesores used to store peoples' junk.