Pace and size matter in the condo business. These are two of the main differences when it comes to building large urban high-rise condo projects, say in downtown Milwaukee and smaller condo developments in the suburbs, like Waukesha.

With smaller budgets, workforces and exposure, a smaller suburban condo developer can usually wait during a downturn in the real estate market for demand to come back before building more units. Larger urban developments are not as lucky.

It’s a lot easier to delay building in the burbs, where condominiums are typically developed within relatively small buildings, than in a downtown high-rise or other large, multistory project.

What that means is a suburban developer can just finish a phase and stop. An urban developer must finish the multistory development 100% before he can have people moving in. This is extremely difficult as sales slowdown and construction loans become harder to refinance.

So if you were a developer, which way would you go? I’d have to say I’d take the burbs in the market we are in right now.

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