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CHICAGO-The lack of class A apartment product is one factorinfluencing the multifamily market. "The worst property is at 98%occupancy," said Jim Loewenberg, co-CEO, Magellan Developmentduring a panel discussion at the fourth annual RealShare Chicago.Matthew Lawton, senior managing director, Holliday Fenoglio Fowlerexplained that condo conversions have slowed down. "Multifamilyowners have been capitalizing on the sales to convert, especiallywithin the investor pool." Nearly 400 industry insiders attendedthe conference, which is produced by Real Estate Media, publisherof Real Estate Forum and GlobeSt.com.

Other factors affecting the market right now for developers arecost increases. Land, labor and materials are all going up and itall affects the feasibility of a project. Loewenberg saysdevelopers "estimate what the increases will be and pass it on tothe buyer. You have to."