CHICAGO | Economic & Business Development

[marothisu]

Originally Posted by emathias

While not the entire answer to they question, with California's progressive income taxes, lower-income people actually have more take-home pay in LA than they do in Chicago. I know I'd pay more in taxes in California, but a friend of mine who mostly works as a waiter says he has more take-home pay in LA even earning about the same gross income. Hollywood also has a lot of working-class and lower-middle-class jobs, the unglamorous jobs supporting the film industry, and base scale actors who few people think about when they think about high-paid producers, directors, and star-level actors.

A lot of my family is from LA and we were talking about COL a few months ago when I was there. They were saying things are ridiculous there for the most part - and of course not everywhere, and not as bad as SF due to size, but for the most part they were very worried, most of my family being life-long angelenos. A number of my family members in LA are well-paid lawyers and still say these things. It's big enough to kind of weather the storm for awhile, but on average, LA is not more affordable than Chicago by any stretch of the imagination. You will find pockets of affordability but you can find that anywhere. A cheaper neighborhood in LA might still be around $1300/mo for a 1 bedroom which isn't terrible but the more desireable places are going to be in the $3000s average for a 1 bedroom which is more expensive than Chicago (and then if you go to a suburb like Santa Monica it's even worse).

By the way, since you mention un-glamorous Hollywood jobs. I have a cousin who is a truck driver for movie studios - he just drives around set pieces. His sister (also my cousin of course) is a long time lawyer in LA. She was joking about how her brother gets paid around the same as she does. He lives well - some of these un-glamorous jobs get paid surprisingly well. My aunt and uncle also live in a quiet bedroom neighborhood in NW LA that is next to suburbs. You can't walk anywhere really and I wouldn't call much there hip or desireable for the standards of younger people. They have pretty good schools though. Their 1900 sq ft home with a patio but almost no grass in the back yard is worth $1M. The house my father grew up in, in Pasadena (a suburb), is now 1600 sq ft and worth around $1M as well. I spent a lot of time in that house and it's shocking to me it's worth that much. If it was in a comparable suburb of Chicago it would be worth no more than $400K right now.

[MayorOfChicago]

http://www.chicagotribune.com/busine...601-story.html

Tech behemoths Facebook, Google planning big Chicago office expansions

Facebook and Google are mapping big expansions in Chicago, where real estate searches by two of the nation’s other technology giants have been the center of attention.

Menlo Park, Calif.-based Facebook is negotiating to lease more than 200,000 square feet in a recently constructed office tower at 151 N. Franklin St. in the Loop, according to sources.

Meanwhile, sources said, Google plans to add more than 100,000 square feet of office space in the city’s Fulton Market district, where the company already has a large Midwest headquarters.

this is welcome news.

[Vlajos]

Originally Posted by MayorOfChicago

http://www.chicagotribune.com/busine...601-story.html





this is welcome news.

Not bad! Now if the rumor of Salesforce looking for 500K SF of office in Chicago comes true, this all will be very good news.

[emathias]

So I've seen ranges of 100 to 200 square feet per tech employee as the "rule of thumb" for square feet to employee ratios, which means Google plans to add 1,000 to 2,000 employees and Facebook 500 to 1,000 new employees. Add to that employees at supportive third-party businesses, and that's probably easily in the 2,000 to 5,000 range for new Central Area jobs extrapolated from those announcements. Add in "significant others," and we're talking nearly a whole year's worth of residential inventory expansion if they all resided in the Central Area (of course not all will, though). Pretty cool!

[marothisu]

Awesome news about Facebook and Google expanding in the city. Not surprised one bit. Also, the article about Facebook hiring more and the guy from NJ saying it looks like they're trying to hire another 500 to 1000 jibes somewhat with this..

[the urban politician]

Originally Posted by marothisu

Awesome news about Facebook and Google expanding in the city. Not surprised one bit. Also, the article about Facebook hiring more and the guy from NJ saying it looks like they're trying to hire another 500 to 1000 jibes somewhat with this..

Sure is great news:

http://www.chicagobusiness.com/reale...hicago-offices

Now all we need are the Salesforce and Walgreens announcements

[the urban politician]

These kinds of announcements are not only going to add a ton of jobs, but they are going to at least help the launch of smaller office tower projects, if not a larger one

[IrishIllini]

Originally Posted by the urban politician

These kinds of announcements are not only going to add a ton of jobs, but they are going to at least help the launch of smaller office tower projects, if not a larger one

Ideally we’d get rid of at least one of the vacant/surface parking lots on Franklin between Washington and Randolph. What a stupid decision to demo the old exchange.

[rlw777]

Google, Facebook expanding Chicago offices from Crain's

In one deal, Facebook is finalizing an agreement for more than 200,000 square feet at 151 N. Franklin St., according to a Chicago Tribune report.

In the other, Google is lining up a deal to add about 100,000 square feet at the 12-story office building developer Sterling Bay is putting up in the Fulton Market District at 210 N. Carpenter St....

At 151 N. Franklin, the 35-story tower from developer John Buck that recently opened as the new home of CNA Financial, Facebook would fill almost all of the remaining available space in the 800,000 square foot building.

[k1052]

IIRC this should put 210 N Carpenter close or at fully leased.

[the urban politician]

^ Any chance you can move your discussion to a different thread?

[the urban politician]

^ This is going to keep West Loop office projects going.

That was supposed to be the McDonald's "vendor village".

But with other tenants filling that space, there is still tons of space out there that will need to be built out just for the McD's vendors alone, let alone other companies who want to be in this area.

[IrishIllini]

Originally Posted by the urban politician

^ This is going to keep West Loop office projects going.

That was supposed to be the McDonald's "vendor village".

But with other tenants filling that space, there is still tons of space out there that will need to be built out just for the McD's vendors alone, let alone other companies who want to be in this area.

If Facebook is on N Wacker, the two lots on Franklin are right around the corner. Excited to see more office space in the West Loop though.

[left of center]

Chicago-based USG to be acquired by Knauf in $7 billion deal
Source: http://www.chicagotribune.com/busine...611-story.html

German manufacturer Knauf has agreed to buy Chicago-based USG for $7 billion, the companies announced Monday.

Under the terms of the deal, Knauf will pay USG shareholders $44 per share, which represents a 31 percent premium to Friday’s closing price.

The transaction, which is expected to close in early 2019, brings together two building materials giants. USG will continue to be headquartered in Chicago after the merger, according to a joint news release issued by the companies.

[left of center]

This article has already been referenced several times in the Old Post Office thread, but I figured I'd post it here for everyone to view.

Walgreens bringing 1,300 jobs downtown
Source: http://www.chicagobusiness.com/reale...-jobs-downtown

Walgreens Boots Alliance is relocating 1,300 jobs to downtown Chicago in the years ahead at a new 200,000 -square-foot office at the Old Main Post Office, the company announced.

The Deerfield-based drugstore giant plans to formally announce June 18 that its new downtown office will house about 1,800 employees "to meet the needs of its current and future workforce while continuing to attract and retain the best talent," Walgreens said in a statement today.

The company will keep its headquarters and roughly 3,200 jobs in Deerfield, where it has been since 1975, but will be the first major tenant at the hulking Post Office structure, which is undergoing an $800 million transformation into a modern office building.

As part of the move—slated for fall of 2019—Walgreens will also relocate employees from current space at the Sullivan Center at 36 S. Wabash Ave., where it has housed its online sales division since 2010. The company expanded that office by more than 20,000 square feet last year.

In addition to those employees, the Post Office will be home to digital and IT operations as well as Walgreens global IT personnel, the company said.

...


Walgreens has eyed the Post Office as an office destination before. It was negotiating a deal in 2014 with the building's previous owner to move its headquarters to the building, but the agreement never materialized and the owner, British investor Bill Davies, died in 2016 just as his venture was selling the property.

Since Walgreens began those talks to move to the city, a flurry of companies have uprooted from their suburban homes for new downtown headquarters. Among the big movers have been Motorola Solutions, Kraft Heinz, Hillshire Brands, GE Healthcare, Beam Suntory and, most recently, McDonald's. Smaller companies such as FTD and Peapod have also relocated to the city.

...

The renovation is slated to be finished next year.

[marothisu]

Prelim employment data for May 2018 came out today by state. Illinois dropped a little bit again and is now at 4.3% unemployment rate. That is a lower rate than 15 states and the same as 3 other states. Weirdly, that's a lower unemployment rate than New York, New Jersey, Pennsylvania, and Washington. California is barely below, at 4.2%.

Also interesting is that the Chicago-Arlington Heights-Naperville metropolitan division unemployment rate fell again to 3.3%. Unfortunately the number of people in the labor force is 58,000 lower than May 2017, but the number of employed persons is only 11,000 lower. April to May trended upwards though (over 17K increase of jobs). Hopefully in a few months it'll be higher than a year previous.

Now with that being said, if we look at nonfarm jobs, then there's over 32,000 more of those jobs in May 2018 versus May 2017. The biggest changes percentage wise from 12 months previous were Construction (+3.3%), Financial Activities (+2.3%), Government (+2.1%), Education and Health Services (+1.8%), and Manufacturing (+1.5%).

[the urban politician]

Wow, with the Walgreens news, Elon Musk news, and other construction updates I need to go on vacation more often. I love coming back and hearing these kinds of uplifting updates.

Another uplifting update:

http://fox6now.com/2018/06/15/we-are...own-milwaukee/

Foxconn will base it’s North American HQ, which will grow to 500 jobs, in downtown Milwaukee. Lots of jobs, lots of engineers, lots of recruitment from local universities. This is separate from the huge plant they are building in Racine.

This isn’t really Chicago news, but this will indirectly benefit the Chicago area as well. Executives buying north suburban homes, recruitment from local schools as I mentioned, and of course many of these well paid professionals will naturally come to Chicago for culture, dining, O’hare access, etc etc. Perhaps even some condos will be sold

[chiphile]

There is no city in the world where you can go downtown directly to your gate. It would change the game for Chicago completely--a world class CBD with an airport terminal right in the middle of it (Block 37). It would be the gold standard by which all other airports are judged, and would probably eliminate significant traffic on the Kennedy.

Instead of making this a wish list, and with a visionary like Elon Musk on hand, they should go for this possibility now. The only problem might be is that such an option would be the first choice over the actual airport side terminals, straining Block 37 capacity. Block 37 retail would have to be removed completely or integrated into the actual terminal experience.

Imagine taking a cab to the O'Hare Downtown Terminal, check your bags, pass security, board a little train, and go directly to your gate in 20 minutes or less. That's no different than having the airport directly downtown. Even Dubai would have trouble conjuring something like this.

[the urban politician]

Originally Posted by chiphile

There is no city in the world where you can go downtown directly to your gate. It would change the game for Chicago completely--a world class CBD with an airport terminal right in the middle of it (Block 37). It would be the gold standard by which all other airports are judged, and would probably eliminate significant traffic on the Kennedy.

Instead of making this a wish list, and with a visionary like Elon Musk on hand, they should go for this possibility now. The only problem might be is that such an option would be the first choice over the actual airport side terminals, straining Block 37 capacity. Block 37 retail would have to be removed completely or integrated into the actual terminal experience.

Imagine taking a cab to the O'Hare Downtown Terminal, check your bags, pass security, board a little train, and go directly to your gate in 20 minutes or less. That's no different than having the airport directly downtown. Even Dubai would have trouble conjuring something like this.

I love this idea, but the problem is how you separate TSA “sterile” from “non-sterile” passengers who may both be going to OHare?

[LouisVanDerWright]

Originally Posted by the urban politician

Wow, with the Walgreens news, Elon Musk news, and other construction updates I need to go on vacation more often. I love coming back and hearing these kinds of uplifting updates.

Another uplifting update:

http://fox6now.com/2018/06/15/we-are...own-milwaukee/

Foxconn will base it’s North American HQ, which will grow to 500 jobs, in downtown Milwaukee. Lots of jobs, lots of engineers, lots of recruitment from local universities. This is separate from the huge plant they are building in Racine.

This isn’t really Chicago news, but this will indirectly benefit the Chicago area as well. Executives buying north suburban homes, recruitment from local schools as I mentioned, and of course many of these well paid professionals will naturally come to Chicago for culture, dining, O’hare access, etc etc. Perhaps even some condos will be sold

This is just another reason why we ultimately need a high speed transit connection to Milwaukee. One wonders if there might not be a change of heart on Scott Walker's part if Foxconn wants a connection between it's campus and HQ?

Ideally we can just continue the HyperLoop all the way from O'Hare to Milwaukee with stops every 20 miles or so along the route. Can you imagine what a wet dream that would be? Chicago Loop to Milwaukee in 30 minutes. Milwaukee to O'Hare in 25 minutes. Loop to Mitchell Airport in 25 minutes.

That would truly be a connection to make even the fanciest Asian megacities feel inadequate.