Construction activity in DuPage County suffered a bit during the early 2000s as the economic downturn caused headaches for building professionals.

But an uptick in construction starts in the region west of Chicago should help the DuPage patient recover.

The value of DuPage starts in the first half of 2004 rose nearly 11 percent, to $839 million, compared with the equivalent period in 2003.

"There are a lot of projects on the boards waiting to get going," said Joseph Krusinski, CEO of Oak Brook-based Krusinski Construction Co., a general contractor.

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Data show that a couple of market sectors are heating up quickly.

School and college starts have tripled and reflect, in part, the need to rejuvenate the county's aging stock of education facilities. Indeed, 20 of the 25 starts were renovations, and the two biggest are the $28 million project at Wheaton-Warrenville South High School and the $26 million redo at Wheaton North High School.

New facilities are being erected, too, including the $25 million Christian Calvary School preschool in Naperville, a town with explosive population growth due to its popularity with young professionals.

Hospital and medical construction are strong and may point to demand for care from the large number of baby boomers.

About $28.8 million in starts have been recorded so far in 2004, a 500 percent increase compared with the same period in 2003, when there was only $4.7 million in new projects.

The 2004 increase is partly attributable to a $20 million addition to Good Samaritan Hospital in Downers Grove. Meantime, the $188 million expansion continues on Central DuPage Hospital in Winfield, a project that started before this year.

More major projects are likely to be announced in the medical area, added Ken Lambert, business manager for the International Brotherhood of Electrical Workers Local 701 and secretary for the DuPage County Building & Construction Trades Council, both based in Warrenville.

Elmhurst Memorial Hospital has purchased land on Roosevelt Road formerly holding a car dealership, and Edward Hospital in Naperville "has another project coming," Lambert said.

The popularity of outpatient care points to medical office building projects, and "we just priced one in Elgin," said Krusinski, the general contractor.

Ten apartment projects - including large ones in Bloomingdale and Elmhurst - have resulted in a doubling in starts in that area.

The increase helped push residential construction overall to go up more than 20 percent, to $434 million. Single-family homes account for the largest chunk, with $388 million in activity.

The demolition and rebuilding of houses are driving some work, Lambert said. Old DuPage towns such as Elmhurst, Hinsdale and Itasca are especially popular for tear-downs.

Several attributes make DuPage attractive for development, including proximity to O'Hare International Airport, lower property taxes than Cook County and a highly educated resident workforce.

The $14.8 billion expansion of O'Hare, the proposed $5.3 billion in improvements to the tollway system and the proposed transit line on DuPage's west edge could prove a boon to the county's construction prospects if they go forward.

Not All Glistening

Because not all starts' contracts are active, the market is still soft for some.
"The first half of the year was the worst we ever had," Lambert said.

Office construction on the Interstate 88 Research and Development Corridor took a hit when the high-tech market went bust in the early 2000s, and office vacancy rates are reportedly high.

Lambert projects that they are close to 20 percent. "I still have 10,000 sq. ft. to rent here, and nobody's knocking my door down," he added. He was referring to the IBEW's recently built headquarters and training center.

Infrastructure starts dropped 36 percent, and the spending drop is partly attributable to state budget cutbacks and the end in 2003 of Illinois First, a bond program initiated in the late 1990s to fund infrastructure.

Undeveloped land is scarce, and many developers head farther west to Will or Kane counties where land is plentiful, Krusinski said.

"Notwithstanding that fact, there is still infill work going on in DuPage County," he added.

 

DuPage County Starts (first half totals each year; in millions)
DuPage County experienced a nearly 11 percent increase in construction starts in first-half 2004.
	2001	2002	2003	2004	%ch. 04/03
Total Commercial	$326.3	$295.3	$202.5	$279.8	+38.1%
Total Residential	$330.7	$362.8	$357.9	$434.3	+21.4%
Total Infrastructure	$95.2	$126.2	$195.6	$124.6	-36.3%
Total Construction	$761.3	$789.6	$756.1	$838.7	+10.9%
Source: McGraw-Hill Dodge Analytics