Case | HBS Case Collection | December 2006 (Revised November 2008)

West Wacker Drive: To Build or Not to Build?

Abstract

In 1980, Thomas J. Klutznick, president of a Chicago-based development company, was considering whether he should build a Class A building on a second-rate site outside the Central Loop or not. He had a promising design, but the economic conditions, concurrent construction boom in other prime locations in Chicago Downtown, and high interest rates suggested he should think long and hard before committing the company's resources to this speculative undertaking.

Keywords: Development Economics; Interest Rates; Geographic Location; Risk Management; Urban Development; Construction Industry; Real Estate Industry; Chicago;

Citation:

Kohn, A. Eugene. "West Wacker Drive: To Build or Not to Build?" Harvard Business School Case 207-028, December 2006. (Revised November 2008.)