Contrasts among family members are often striking.

Such has been the case recently between the stable construction market in DuPage County, Ill., and the occasionally unruly Chicago metropolitan market overall.

The dollar value for construction starts in the Chicago area in the first half of 2002 rose 26 percent compared with the same period in 2001, to $8.3 billion, according to Robert Murray, vice president of economic affairs for McGraw-Hill Construction's F.W. Dodge division. In 2003, starts retreated by a similarly significant margin, 19 percent, to $6.7 billion.

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The swing in DuPage during the same period was much less drastic. There, construction starts edged up 4 percent in 2002 over 2001, to $790 million, data show.
Yet in 2003, starts in the first half were $761 million, a 4 percent decline from 2002.

Viewed over the three-year period, the DuPage market held steady. "The first half 2003 construction totals for DuPage County…were essentially even with the county's pace in the first half of 2001," Murray added.

DuPage boasts certain advantages that drive development and help keep the area stable, such as lower taxes than Cook County, proximity to O'Hare International Airport, skilled labor base and a superb highway system.

In addition, the large number of technology businesses along the Interstate 88 Research and Development Corridor, such as Tellabs and Lucent Technologies, makes the area attractive for development, such as the $171 million physics project at Fermi National Accelerator Laboratory profiled in this issue.

Infrastructure Increases

Data show selected markets kept construction going in DuPage in the first half of 2003, and infrastructure activity was especially strong.

Highways increased 66 percent, to $115.4 million, and reflect the reconstruction of a segment of the Eisenhower Expressway Extension between Golf Road and Thorndale Avenue, the reconstruction of North Avenue in Addison and improvements to Ferry Road in Wheaton.

Bridges surged 421 percent, to $29.6 million, and indicate work on a $15 million project in Lisle, an $8 million bridge element on the Ferry Road project and a $6.2 million project on the Eisenhower Extension over North Avenue and Woodfield Road.
Two relatively small infrastructure markets, river/harbor development and sewerage, also saw growth, of 84 percent and 12 percent, respectively.

"The representatives and county officials have done a good job getting money back from Washington, D.C.," said Joe Krusinski, president of Oak Brook-based Krusinski Construction Co., a general contractor in DuPage.

Selected commercial and institutional markets were also strong in the county.

Store construction doubled in 2003, to $76.9 million, data show. Propelling the segment was the start of the $50 million Chicago Premium Outlets Center in Aurora.

In Naperville, which continues to grow in population, retail is hot. Two small developments, Van Buren Place and Washington Place, have recently started downtown next to the nearly complete $40 million Main Street Promenade shopping center, which started before 2003. A five-level parking garage was also recently completed.

Hotels in DuPage saw an increase of 239 percent, to $15.5 million, including the start of the $8 million Sheraton Four Points Hotel in Carol Stream.

Three relatively small DuPage markets also saw increases in starts, amusement/recreation, 274 percent; public buildings, 49 percent; and manufacturing, 20 percent.

Construction of bank outlets - especially those owned by the large downtown Chicago firms like Bank One, Harris Bank and LaSalle Bank - is also strong, Krusinski said.
Banks are emphasizing convenience and hometown roots in their marketing messages.

Hometown and Health Care

Several factors exert a strong influence on the DuPage market.

Employers like to locate in DuPage so the large number of residents in the area can work near their dwellings.

Because a lot of baby boomers live in the county, the health-care market is an important one, said Brad Benhart, senior project manager in the suburban office of Chicago-based Pepper Construction Co. "Baby boomers need a little more health care - not chronic-type things but rehabilitative care," he added.

Edward Health Systems in Naperville just completed a $45 million heart hospital and recently started a $20 million expansion to its emergency-care department, said Wally Tarasewicz, a project manager with hospital.

In Winfield, Central DuPage Hospital is embarking on a $188 million expansion, a project profiled in this issue.

A DuPage downside is the lack of undeveloped land in the relatively small county.

Businesses that do not want to leave contract for interior improvements.
Redevelopments projects also happen for the same reason.

"In some cases, it makes sense to buy something, tear it down and start from scratch," Krusinski said.