Construction Firm Secures Over $4M in New Contracts
CMD, a subsidiary of 1847 Holdings, has secured over $4 million in new contracts, expanding its project award pipeline to $17.4 million for the first half of 2026. The company's active bid pipeline now exceeds $160 million across segments including multifamily, tract homes, and commercial construction.
The Chicago multifamily market is positioned for stability, with rent growth projected at 3% for 2026, supported by a significant shortage in new construction. The city's construction pipeline is the lowest among major U.S. markets, ensuring that demand continues to outpace supply. This dynamic has kept Chicago's vacancy rate around 5%, well below the national average. Midwest markets, in general, are attracting investors due to their steady performance and higher yields compared to other U.S. regions. Cities like Chicago are seeing strong rent growth, outperforming the national average, which is driven by limited new supply and consistent demand for workforce housing. For investors, this translates to multifamily cap rates hovering around 6% to 6.7%, creating a more active transaction market. For those looking to invest, neighborhoods like Avondale, Pilsen, and Logan Square are showing strong rent performance and growth potential at more accessible entry points than established areas like Lincoln Park or the West Loop. Adaptive reuse projects are also becoming a key source of new inventory, with over 800 such units slated for delivery in Downtown Chicago during 2026, signaling opportunities in redevelopment. To transition into a real estate investment firm, professionals should focus on developing strong financial analysis, underwriting, and market research skills. Firms are increasingly seeking candidates who can perform complex financial modeling and have a deep understanding of investment feasibility and risk assessment. Networking and building relationships with industry professionals remain crucial for identifying opportunities and raising capital. A key wealth-building strategy in real estate involves leveraging tax advantages. Depreciation allows investors to deduct a property's value over time, creating a "paper expense" that reduces taxable income without affecting cash flow. Additionally, a 1031 exchange permits the deferral of capital gains taxes when selling an investment property by reinvesting the proceeds into a similar asset. Raising capital for initial investments can be approached in several ways, including partnering with other investors, seeking private money lenders, or utilizing seller financing. Real estate syndication is another powerful strategy, allowing investors to pool funds to acquire larger, more stable assets than they could individually. This method provides access to deals like Class A apartment complexes that can generate significant cash flow and appreciation. To stay ahead, professionals should follow key industry publications. BiggerPockets is a valuable resource for investors at all levels, while publications like the National Real Estate Investor and Green Street's "The Spotlight" blog offer insights into commercial real estate trends and institutional-level research. For local market intelligence, following reports from firms like CoStar and CBRE provides critical data on Chicago-specific trends.
