CHICAGO | General Developments - Page 312

lawfin · #**6221** Posted **Feb 27, 2009, 4:05 PM**

maybe....hopefully, those n mich ave rents are high.....what are they a sq ft?

Steely Dan · #**6222** Posted **Feb 27, 2009, 5:43 PM**

Quote:

Originally Posted by denizen467

Well, how sky-high are those N Mich rents?

Remember, this is about a lease that expires Feb 2010, and they're saying they'll close in Jan 2010. This public announcement might just be a tactic to negotiate the renewal price with the landlord.

yeah, this sounds like a lease negotiation ploy to me. borders is a national chain and their specific spot on the mag mile offers them very high visibility on one of the nation's premiere shopping streets. they want a discount on their rent because the economy is in the shitter, simple as that, there's no way in hell they actually want to leave that space just because they're not making as much money as they thought they would. the kind of visibility they have with their store on north michigan is so high that they'd probably even operate it at a loss if they had to.

Mr Downtown · #**6223** Posted **Feb 27, 2009, 6:38 PM**

Remember that there's a lot of national speculation that the entire Borders chain will shut down.

lawfin · #**6224** Posted **Feb 27, 2009, 6:43 PM**

I thought it was Barnes and Noble that was in danger, and that Borders might acquire them......I probably have it confused as I can't tell the difference between the two as it is

Maybe Borders tries to be a bit hipper perhaps?

wrab · #**6225** Posted **Feb 28, 2009, 1:03 AM**

These large book chains have been hurting for a while, long before the downturn, ever since internet sales exploded in the late 90s. Sill, you'd think that the Mag Mile branch would outperform the North Ave & Uptown stores, even with the higher rent factored in?

FlashingLights · #**6226** Posted **Feb 28, 2009, 4:03 AM**

Quote:

Originally Posted by Steely Dan

yeah, this sounds like a lease negotiation ploy to me. borders is a national chain and their specific spot on the mag mile offers them very high visibility on one of the nation's premiere shopping streets. they want a discount on their rent because the economy is in the shitter, simple as that, there's no way in hell they actually want to leave that space just because they're not making as much money as they thought they would. the kind of visibility they have with their store on north michigan is so high that they'd probably even operate it at a loss if they had to.

While I can tell your not a Finance person. Money is money, they wouldn't operate at a loss for a minimal marketing reputation gain. Companies will almost always shut down stores that are high profile if they are not profitable.

It's sometimes better to have fewer low profile stores that are more profitable then a few high profile ones that are not.

simcityaustin · #**6227** Posted **Feb 28, 2009, 7:08 AM**

^^^ That's not always true though, look at some stores in NYC, they write off the rent as advertising expense.

jcchii · #**6228** Posted **Feb 28, 2009, 3:18 PM**

^similar on Mich ave. A number of stores are flat to money-losers, but for national chains it's like an ad that you can walk into

ChicagoChicago · #**6229** Posted **Feb 28, 2009, 5:59 PM**

Quote:

Originally Posted by simcityaustin

^^^ That's not always true though, look at some stores in NYC, they write off the rent as advertising expense.

That is true. Unfortunately, advertising is one thing that takes a hit when budgets get cut.

mind field · #**6230** Posted **Mar 1, 2009, 5:36 AM**

For some reason i always have kept this copy of an April 2001 issue of Fortune magazine, and it lists the Michigan Ave. Borders store as the chains most profitable in sales per square foot. This is in a section where fortune asked a lot of different retail corps what their most profitable location was.

cbotnyse · #**6231** Posted **Mar 1, 2009, 3:45 PM**

I might believe this is a ploy to try and negotiate lower rents, but Borders itself is not doing well and will probably shut down soon. The stock price is 0.55 a share. http://money.cnn.com/quote/quote.html?symb=BGP&time=5yr

hopefully it doesnt sit vacant for long, or at all.

ardecila · #**6232** Posted **Mar 1, 2009, 5:45 PM**

Quote:

Originally Posted by mind field

For some reason i always have kept this copy of an April 2001 issue of Fortune magazine, and it lists the Michigan Ave. Borders store as the chains most profitable in sales per square foot. This is in a section where fortune asked a lot of different retail corps what their most profitable location was.

Lots of things have changed since then. I would not be surprised if the State/Randolph Borders is now more profitable now that the theater scene has boomed on State Street and Millennium Park is drawing millions of people into the East Loop.

spyguy · #**6233** Posted **Mar 1, 2009, 6:46 PM**

It will be a larger lifestyle store with a bank (US Bank?) and Starbucks. Most of the parking is on top of the building. I believe the parcel to the north (and also possibly to the east) will probably be sold, so hopefully we get some density there.

spyguy · #**6234** Posted **Mar 1, 2009, 7:01 PM**

I think a long time ago VivaLFuego asked about the abandoned 9 story building at Kenmore and Hollywood, the Pomeroy. According to Ald. Smith, the CHA will start renovating that building plus another called the Kenmore at 5040 North Kenmore and turn them both into senior housing.

Ch.G, Ch.G · #**6235** Posted **Mar 1, 2009, 9:31 PM**

^ So they're planning on relocating the Dominick's on top of the actual corner of the intersection?

It makes financial cents (hey-o) that they would consolidate the parking by moving it to the roof, not to mention that it's better urban planning. That's been the arrangement of the Whole Foods in Evanston for awhile and it seems to work really well there; I only wish more grocery stores and similarly large retailers would follow suit.

As far as the design, it's certainly better than the status quo for these types of businesses though the complex seems pretty sprawling. Is it just me or does it look like they are planning green walls?

I do hope that whatever land remains from the Chicago Lodge is sold for development. It would be a great location for a high-rise.

BWChicago · #**6236** Posted **Mar 1, 2009, 11:02 PM**

There are some plans at http://www.uptownupdate.com/2009/02/...rendering.html

Quote:

Originally Posted by Ch.G, Ch.G

^ So they're planning on relocating the Dominick's on top of the actual corner of the intersection?

It makes financial cents (hey-o) that they would consolidate the parking by moving it to the roof, not to mention that it's better urban planning.

honte · #**6237** Posted **Mar 2, 2009, 4:37 AM**

^ The Jewel at Chicago / Damen has rooftop parking. It actually makes going to the strip-mall grocer a little bit more interesting.

We've been seeing many more developments of that nature in Chicago recently.

aaron38 · #**6238** Posted **Mar 2, 2009, 4:53 PM**

Sorry if this is already been mentioned, but I've heard a radio spot a couple of times for a business conference coming up for Lake Shore East aimed development issues and attracting retail tenents. Thought I'd pass it on.

Nowhereman1280 · #**6239** Posted **Mar 2, 2009, 7:13 PM**

I love that new Dominicks, that is exactly what that corner needs! Right now I dread walking down there every time I have to go to the store. You have to walk past a half block of blank brick wall and then through a parking lot to get in. It will be nice to have doors right on the street and no parking lot.

I've also heard that there is talk of a 400 or so unit building being constructed in the newly freed up space to the north of here. At 10-15 units a floor that means we are looking at a 25-40 story building. This area could really use a fresh apartment tower to spruce up the neighborhood's dated look. And lets face it, Catalpa Gardens (the only thing of note built here since the 70's) isn't doing much to positively influence the aesthetics of the area...

Anyone have a concrete idea of the time frame for this building? I've heard that the Dominicks is going to close fairly soon, but that is just building gossip with a bunch of old people who probably have no idea what is really going on...

Ch.G, Ch.G · #**6240** Posted **Mar 2, 2009, 7:52 PM**

^ I disagree. Catalpa Gardens is fun! The "Clairvoyant" or "Clairvista" or WeverTF it's called a few blocks to the north, on the other hand, is a disaster.