ETI Blog

As other metro areas plateau or pull back, Chicago’s multifamily market is outperforming national averages. With rent growth projected to top all major U.S. apartment markets this year and vacancy edging toward decade lows across the city and more than half of its submarkets, Chicagoland’s multifamily sector is being propped up by durable demand against a backdrop of limited new supply.

While new construction is down more than 40%, the pendulum is swinging toward value-add reinvestment, and multifamily CapEx projects have stepped into the spotlight as the go-to strategy for capturing opportunity and modernizing aging housing stock as resident expectations continue to rise.

For architects, this activity puts a premium on designs that can anticipate and plan for challenges that inevitably arise in multifamily CapEx construction. Aging infrastructure, occupied units, tight site conditions and incomplete as-builts can complicate execution and create cost exposure that compresses investor returns.

Below are five of the most common constructability challenges and field-backed strategies that architects can incorporate to overcome them and keep projects moving so that margins can be preserved. 

1. Bridging the gap between design plans and property specs

Sometimes what looks good on paper may not align with what’s behind the walls of the property. In multifamily CapEx renovations, especially in older, historical buildings, existing conditions often diverge from drawings or lack reliable as-builts altogether. Peeling back the layers during demolition can reveal inconsistencies in plumbing risers, electrical panel capacity or even structural framing that were never accounted for in the design. When that happens, rework becomes unavoidable and can set the project back.

Site walks and system assessments can give the team a clearer lens into constructability and allow extra time for course correction for things like shifting appliance locations to align with existing utilities or rerouting ductwork to minimize structural disruption. For example, if a kitchen island with integrated plumbing is specified based on assumed framing, but demo reveals a structural concrete shear wall, rerouting the drain might require coring, firestopping upgrades and revised fixture placement across mirrored units. 

Washer and dryer upgrades are one of the most common value adds in multifamily capital improvement construction but could pose some inconsistencies between design plans and property specs. Venting paths, for instance, may intersect with balconies or conflict with historic preservation rules, but these limitations typically don’t come to light until walkthroughs. If done early in the design phase, however, constructability could be adjusted to accommodate ventless units or a revised stack configuration that aligns with what the building can support.

Contractor tips

Incorporate time and budget for:
•    Exploratory demolition of high-risk zones (e.g., chases, corners, bulkheads)
•    Field verification of load-bearing elements and shaft sizing
•    Notes in the drawing set that call out “verify in field” conditions for critical routing or alignment points
•    Flexible details that allow for minor dimensional shifts during layout

2. Aligning design with the moving parts of procurement

According to a recent report on CapEx optimization, half of respondents pointed to rising equipment costs as one of the biggest obstacles to successful execution. Costs have not only gone up, but they also can be unpredictable at times, causing budget discrepancies later in the project. Effective procurement management is not only balancing materials costs within budget parameters but also about reconciling design intent with real-time availability, lead times, installation complexity and trade partner bandwidth.

In multifamily CapEx construction, selections that haven’t been reconciled with site logistics or market constraints can open the door to avoidable redesigns and costly schedule drift. For instance, selecting an HVAC system that requires specialized trades not included in the original bid package could interrupt phasing efforts and jeopardize turnover dates. Or, even high-performance window systems that seemed ideal in early planning stages could later necessitate lift equipment, sidewalk closures or façade rework.

Contractor tips

Early conversations around price points, availability and access during schematic design could help sidestep late-stage complications, especially related to:

•    Long-lead HVAC equipment or electrical switchgear
•    Imported finish materials or specialty tile
•    Envelope components requiring lifts or cranes
•    Products with installation requirements beyond standard trade scopes

3. Sequencing approvals to support construction flow

Multifamily CapEx projects operate on tightly interlaced schedules, where trade sequencing, inspections and turnover timelines are all interconnected. But when owner approvals aren’t paced in sync with how construction unfolds, it can create a chain reaction of disruptions. In fact, decision-making was ranked the second-most significant challenge, with 47% of respondents citing organizational alignment as a common fault line in the process.

Design elements are often greenlit in a different order than they’re built. That misalignment can complicate workflows, leading to stop-start progress and out-of-sequence installations. For example, postponing the selection of bathroom fixtures might seem like a minor detail, but it can delay plumbing rough-ins, which can then affect drywall installation, painting and punch walk readiness across an entire floor.

Even with well-documented drawing sets, indecision can affect the rhythm of a jobsite and compress timelines in ways that strain quality and elevate cost. A more effective approach is to map owner decision packages around construction logic, not just design deliverables. Early approvals, such as MEP riser paths, shaft sizing and rated assembly details, give contractors the ability to proceed without having to circle back mid-install.

Contractor tips

Anticipate and structure owner approvals for:

•    Kitchen and bathroom layouts tied to rough-in locations
•    Electrical fixture sizes that influence box placements
•    Long-lead items requiring upfront deposits or staging coordination
•    Rated wall assemblies or utility penetrations affecting inspection sign-offs

4. Building within the boundaries of the site

Site logistics may not be the most visible part of a multifamily CapEx project, but they often determine what’s possible and when. In dense urban environments like Chicago—and even in constrained submarkets where space is at a premium—access limitations can create a triangle of tensions among access, safety and progress if not addressed early.

Envelope upgrades, for example, may call for swing stages, crane mobilization or sidewalk closures, many of which carry permit requirements, neighborhood coordination and tight execution windows. When those needs aren’t accounted for in design or phasing, material deliveries might create a logjam and equipment staging can be compromised.

Even routine scopes, like masonry repointing or balcony repairs, can slow progress if shared access points or resident entryways aren’t factored into the plan. Once a project falls behind due to site access oversights, clawing back from that lost time requires re-coordination across crews and potential last-minute value engineering to preserve investor upside. Designs that consider these logistical parameters up front create more breathing room in the schedule. 

Contractor tips

Consider collaborating on logistics input during preconstruction to assess:

• Availability of laydown and staging areas
• Swing stage or crane access for envelope scopes
• Potential conflicts between delivery routes and resident access
• Permit lead times for sidewalk closures, lift equipment or alley obstructions
• Sequencing Around Site Constraints
  
  

5. Keeping pace in occupied properties

With Chicago’s vacancy rate hovering around 4.2%, there’s little slack in the system for lingering renovations or delayed turnovers. Every day a unit sits vacant is lost revenue, putting speed to market and strategic phasing at the center of CapEx performance. Architects who anticipate how revenue scope intersects with tenant occupancy and operational continuity give projects a better shot at maintaining their leasing and investor targets. 

Unit interiors, especially those in stacked layouts, benefit from design plans that support floor-by-floor sequencing, allowing contractors to consolidate work by trade and minimize downtime. Clear mechanical pathways and grouped utility access points can streamline turnover by reducing how often crews need to enter occupied areas. Common area work, like corridor lighting, flooring or elevator lobby upgrades, add another layer of complexity. For example, rewiring that disables hallway lights across multiple floors can violate fire egress requirements, delay life safety inspections and prompt resident complaints in near-capacity buildings.

These insights become especially valuable in dense urban submarkets where properties are tethered to accelerated lease-up targets and operating margins leave little room for error. 

Contractor tips

Consider these strategies early in design to support turnover speed and resident experience:

• Group scopes by trade and location to reduce contractor crossover
• Maintain fire egress and service access during phased common area work
• Schedule noisy or high-impact scopes during daytime hours when tenants are out
• Account for commercial tenant access and deliveries in mixed-use buildings

Closing the loop between design and execution

When it comes down to anticipating constructability obstacles on your next multifamily housing capital improvement project, every detail drawn today contributes to how the building performs tomorrow. In a market like Chicago, where value-add reinvestment has become one of the primary strategies, designs that account for field execution from the outset help protect investor upside, accelerate timelines and deliver a resident-first experience that stands out in a competitive landscape.

As one of the top construction companies in Illinois, our team brings over 25 years of CapEx construction services to Chicago and surrounding communities. We deliver dependable results by anticipating obstacles and staying proactive to protect the integrity of your design. 

Let’s build what’s next—together. Contact ETI Construction at (773) 299-6574 or email us to discuss your next project.