(To read more on the multifamily market, click here.)

CHICAGO-The lack of class A apartment product is one factor influencing the multifamily market. "The worst property is at 98% occupancy," said Jim Loewenberg, co-CEO, Magellan Development during a panel discussion at the fourth annual RealShare Chicago. Matthew Lawton, senior managing director, Holliday Fenoglio Fowler explained that condo conversions have slowed down. "Multifamily owners have been capitalizing on the sales to convert, especially within the investor pool." Nearly 400 industry insiders attended the conference, which is produced by Real Estate Media, publisher of Real Estate Forum and GlobeSt.com.

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

Lawton points out that Chicago is still very affordable in comparison to other cities, especially both coasts. Lev adds that a developer has to determine what kind of return you'll get from a project. "The product type is important. Townhomes often are lower risk because you can spread out the cost over a longer period of time. You can't do that with a high-rise."