An awesome analysis of how Dubuque landed the IBM project from Tom Daykin of the Milwaukee Journal-Sentinel today that discusses not only the intimate details of how the IBM-Dubuque-Iowa partnership came about, but talks about Dubuque in general, it’s economic history, and the great transformation we’ve made from a strictly industrial-manufacturing community into a hub for banking, technology, and tourism.

Milwaukee Journal-Sentinel Article Here

I especially love the tone of the article in which the author uses the Dubuque example as a waypoint for Milwaukee’s leadership to guide them, hoping to assimilate the success the Dubuque area has been taking part in, not only the IBM project, but also Hormel’s new production facility, the newly-opened Diamond Jo Casino, and the (renovated and now re-named) Mystique of Dubuque.

It’s been a little more than month since the IBM in Dubuque announcement was made, so I thought I’d do a quick-link round-up of a tiny portion of the continuing coverage of the project.  Even yours truly has been mentioned for my personal coverage, especially the multiple posts I made to River Banks to Corn Fields on the day the project was announced.

THOnline article with the sidebar mention of RBtoCF.com here.

The incentive package that helped being IBM to Dubuque has certainly had it’s share of scrutiny, including within the article I linked above.  Here are some other reactions as well as a loose timeline of the process to cement the arrival of IBM to Dubuque.

Des Moines Register IBM Incentive Details – January 16th, 2009

THOnline.com IBM Incentives Approved – February 20th, 2009 (including some key numbers in sidebar)

THOnline Roshek Building Renovations on Fast Track – February 24, 2009

Rockford, Illinois views the Dubuque – IBM model as path to similar success February 14, 2009

IBM, as well as Dubuque and other Iowa representatives are fanning out to all the area colleges, large and small, holding  job fairs.  Computer World reported the mass number of applications pouring in as well:

DMRegister.com  IBM Center Provides Welcome Jobs – February 20th, 2009

Computer World Reports that Applications are Pouring In

EmploymentCrossing.com even has a video short on YouTube about the IBM Service Center here:

Then, finally, there’s this gem from our good friends in Wisconsin (Go Hawks!). Neil Heinen, in an editorial for WISC Channel 3000 states “We’re talking Madison vs. Dubuque! We’ve been competing with Raleigh-Durham, Boston, Denver and Silicon Valley? Or so we thought. IBM could have located here and chose Dubuque? That’s just not right.”

Well, at least you have Capitol Brewery, Mr. Heinen.

Now that the dust is settling on the announcement of IBM’s project in Dubuque (see previous posts here, here, here, & here), I thought I’d write a follow up about the impacts I’m already seeing.  I’ve noticed decided changes in behavior by both our buyers & sellers in just the last week and a half. 

Buyers who have been already in the market for some time, or those thinking about jumping in, are stepping a little faster these days.  They see the incoming IBM workers, managers, and executives as a reason to hurry up and make a purchase decision, especially with still-historically-low interest rates available. 

Private showings and open houses are definitely seeing more traffic.  In fact, one of my open houses on Sunday at 2791 Oak Crest saw a headcount of approximately 25 visitors in an hour and a half.  Our other open at 9043 Olde Davenport Road saw more visitors than in either of the previous open houses despite the day’s temperature hovering just above zero degrees.

For our sellers, I’m also seeing changes in behavior.  Creating up to 1,300 now positions in a community will clearly impact the local housing market.  Knowing these workers will be here in the upcoming months is changing sellers attitudes about their prospects for sale.  Some Dubuque homebuilders have actually raised their listing prices on their spec (speculative) listings. 

As a personal note, I was involved in a number of negotiations last week that demonstrated our sellers’ new resolve.  In each case, the sellers were not as accommodating in negotiations as they had been even a few weeks ago (pre-IBM).  That’s not to say sellers are demanding full list prices, but buyers should be aware that counter-offers will not be as generous as they have been in the last year or more.

Over the last year, MLS stats show that, on average, the greater Dubuque market gives up in negotiation 3.3% off the current listing price.  In real terms, a home listed for $200,000, based on Dubuque averages, would expect to sell for approximately $193,400.  Going forward, I expect that 3.3% figure to shrink as demand for housing strains the current available supply.

As with any post, your comments and questions are encouraged…