There are many encouraging signs for both Lake Forest’s and Lake Bluff’s real estate markets, according to the top administrative officials from each community.
However, they acknowledge there are situations they are monitoring.
Lake Forest City Manager Jason Wicha and Lake Bluff Village Administrator Drew Irvin provided an overview of both the residential and commercial real estate market at a Jan. 26 breakfast forum hosted by the Lake Forest/Lake Bluff Chamber of Commerce.
Wicha said more than 1,500 families moved into the city over the last couple of years, with roughly 30 new homes constructed over the past year. He added the average sales price of a residential home this year is now just under $1.3 million, compared to approximately $850,000 just two years ago.
“We are seeing a significant increase in the value of homes in Lake Forest that had been very stagnant and depressed going back to the recession of 2008,” Wicha said.
After the meeting, District 67 spokeswoman Melissa Oakley said kindergarten enrollment for the 2021-22 school year was the highest it was has been in 10 years, but she said it is not clear whether that is trend that will continue.
The real estate market may have cooled recently, Wicha added, citing transfer tax data.
“That is not surprising, in part because inventory remains very low in both of our communities,” he said.
Wicha stated city officials are having internal discussions on how to engage all of the new families to the community. To that end, the city will issue a community survey to better understand the priorities of residents.
In Lake Bluff, Irvin said there were only 19 houses available in the village in late January, with the average home price now close to $1 million.
“I don’t know if we have ever been that close to Lake Forest home pricing,” Irvin said. “It’s shocking.”
Irvin said the average Lake Bluff house in now on the market for about 60 days.
Yet, Irvin conceded the village struggles with diversified housing beyond traditional single-family houses.
“It comes up in our strategic planning sessions,” Irvin said.
In terms of commercial real estate, Wicha said the city is in the process of updating its comprehensive plan and looking at the chapter concentrating on the central business district.
The comprehensive plan is a guiding land use document intended to drive long-term decisions of an area. Wicha emphasized said the fundamental character of the city’s downtown is not going to change.
“But we do think it is important to take the opportunity to think about what might be, and what could be,” he said.
Wicha noted the Plan Commission — after receiving public input — will make recommendations to the City Council on any changes including design parameters.
“We want to ensure that developers understand if they are interested in coming to Lake Forest, what they can expect and what we want to see,” Wicha said.
He also emphasized city officials want to strike a balance for all parties to maintain developer interest.
“Letting developers know what is important to us helps us streamline the process,” Wicha said.
In another aspect of downtown, Wicha mentioned five new restaurants have recently opened in Lake Forest.
Moving to the western edge of the city, the Chicago Bears recently indicated they plan to maintain their corporate headquarters and practice facility at Halas Hall at the back of the Conway Park office complex no matter what happens with their proposed stadium in Arlington Heights.
However, Wicha admitted there have been changes at the overall situation at Conway Park tied into the changes brought on by the coronavirus pandemic.
“There is uncertainty about what the future of office space is going to look like in the next couple of years, and we are going to have to see how that shakes out,” he said.
“We are seeing some entities that have downsized a bit and consolidated space,” Wicha continued. “But the good news is those that are out there I think will be staying for some time. We are not seeing an exodus out of the park.”
After the meeting, Community Development Director Catherine Czerniak said many employees are now working a 3-4 days a week at the office, the rest from home.
Czerniak added overall two of the Conway Park buildings are vacant including the space formerly occupied by Tenneco but Consumer Credit Union purchased another Conway Park building that will be a corporate headquarters.
Czerniak added there has been a strong guest demand for the Conway Park Forester Hotel that opened in 2021.
Back in Lake Bluff, Irvin said the village is looking at what opportunities exist for rebuilding the streetscape in the area he deemed “Block One Lite.” That is a small area from Sheridan Road to Walnut Avenue, just east of the Metra train station.
Irvin spoke of the greater interest in the village’s downtown in recent years.
“When I first came to the village of Lake Bluff, I could have taken a nap in the middle of Scranton Avenue and not worry about it,” he said.
Irvin juxtaposed that memory against the village recently updating its outdoor dining regulatory hours with the cutoff outside at 11 p.m. on weeknights and midnight on weekends.
Irvin said similar to Lake Forest, the village’s comprehensive land use plan is being updated with officials reviewing proposals from planning firms and expect a contract to go before the Village Board soon.
Irvin revealed there was not a lot of activity regarding the sale of the 47-acre Stonebridge property, where the village and the developer settled a long-standing legal dispute early last year. However, he did expect both the manor and gatehouse to soon be razed.
At the area known as Block 3 in downtown Lake Bluff, where a PNC bank site once stood, Irvin said the situation remains quiet for now.
“There is lots of talk, but nothing to show for it,” he said. “That is something the village is going to continue to look at.”
