When U.S. Rep. Danny Davis announced he was not running for re-election, he became the third Congress person representing Illinois to do so this year. And because two U.S. Representatives are running to fill retiring U.S. Senator Dick Durbin’s seat, a fourth position may end up vacant as well.
The Congressional shake up comes at a time when real estate players have a lot on the line. While rent growth in Chicago is brewing a hot multifamily market, sluggish construction starts indicate that developers and lenders aren’t as active as they could be. At the same time, Chicago’s office market is stuck in a rut, reporting a record high 27 percent vacancy rate in the second quarter of this year. And the suburban office market isn’t faring much better.
As a result, the industry is keeping a close watch on any potential political changes on the horizon.
Real estate scion Jason Friedman posted the first fundraising numbers in the race to replace Davis and is coming away as an early favorite of the industry.
Prominent donors include Waterton CEO David Schwartz, Private Investment billionaire Craig Duchossois, CRG CEO Shawn Clark among others.
Davis’ district is of significant interest to real estate because it includes much of the Loop and Fulton Market.
Friedman, son of prolific River North developer Albert Friedman, appears to be downplaying his ties to the business while campaigning. A press release characterized his $1 million fundraising haul as a collection of donations from “community leaders and grassroots supporters.” And his website refers to his Chicagoan grandfather and great grandfather, but skips over his father, whose company he served as president of from 2005 until 2023. In a Q&A with The Real Deal, however, Friedman embraced his industry experience.
The race ahead of the March 17 primaries will be where the real action plays out because the district is considered safely Democratic.
At least eight other challengers have recently joined the race, including state Rep. La Shawn Ford, who Davis endorsed last week. When the newer candidates report their fundraising totals next quarter, the results will likely reveal more nuances about other coalitions forming.
Meanwhile, at the city level, it’s politics as usual.
President Donald Trump’s administration closed two investigations by the U.S. Department of Housing and Urban Development into the city of Chicago’s zoning practices, a move that will likely end recent efforts to reform the informal practice of “aldermanic prerogative.”
Local housing advocates had hoped the federal investigations would lead to reforming or ending aldermen’s control over zoning in their respective wards. The investigations stemmed from a 2018 lawsuit that alleged such control led to racial segregation and dampened affordable housing development in wealthy, predominately white neighborhoods.
The city had already entered a voluntary agreement to negotiate a resolution after federal housing authorities found merit in the claims. Mayor Brandon Johnson’s administration was reportedly near an agreement at the end of last year, but negotiations tapered off after Trump took office.