CHICAGO | Economic & Business Development - Page 83

left of center · #**1641** Posted **Jun 19, 2018, 2:09 AM**

Quote:

Originally Posted by the urban politician

It would also turn Block 37 and environs into a damn madhouse of development. Office development would once again be appealing in the eastern Loop

This is probably the most overlooked point. Office development has been trending west due to the proximity to the two big suburban commuter rail stations in the West Loop. The wholesale abandonment of the East Loop by commercial interests for residential will be halted (if not partially reserved), since the Block 37 station would be insanely appealing to companies that do a lot of business across the country and abroad.

This really will be a game changer in many ways.

ardecila · #**1642** Posted **Jun 19, 2018, 4:04 AM**

^ Good point, I was scoffing at the idea of a large office component on the Thompson Center, or Merchandise Mart-esque tech space above Macy's, but it really seems like a possibility with the airport express.

Maybe the "next Loop" is.... the Loop.

left of center · #**1643** Posted **Jun 19, 2018, 4:46 AM**

Quote:

Originally Posted by ardecila

Maybe the "next Loop" is.... the Loop.

What an age we live in!

Via Chicago · #**1644** Posted **Jun 19, 2018, 7:08 PM**

Quote:

Originally Posted by the urban politician

It would also turn Block 37 and environs into a damn madhouse of development. Office development would once again be appealing in the eastern Loop

where exactly are you proposing additional development in that area? its more or less built out.

Freefall · #**1645** Posted **Jun 19, 2018, 9:15 PM**

Quote:

Originally Posted by Via Chicago

where exactly are you proposing additional development in that area? its more or less built out.

The GAP building

jpIllInoIs · #**1646** Posted **Jun 19, 2018, 11:01 PM**

Quote:

Originally Posted by Via Chicago

where exactly are you proposing additional development in that area? its more or less built out.

The Chicago Title & Trust 2 building never got built, only the parking base.
The Conservatory on Lake/Clark.
150 N Franklin
The redevelopment or addition to Thompson Center
Teardown and redevelopment of Harold Washington College
The niche hotel on Clark and Hubbard
Rehab of the Federal properties on S. State street.
Also the Macys building and Sullivan center are going to need to fill office space.

LouisVanDerWright · #**1647** Posted **Jun 20, 2018, 2:28 AM**

Chicago gains a Dow Jones Industrial Average component today as GE is booted from the indicator in favor of Walgreens:

https://www.cnbc.com/2018/06/19/walg...n-the-dow.html

marothisu · #**1648** Posted **Jun 20, 2018, 3:28 AM**

Quote:

Originally Posted by LouisVanDerWright

Chicago gains a Dow Jones Industrial Average component today as GE is booted from the indicator in favor of Walgreens:

https://www.cnbc.com/2018/06/19/walg...n-the-dow.html

That is interesting. So in a week, Chicago area will have 4 total companies in the DJIA out of 30 total companies.

the urban politician · #**1649** Posted **Jun 20, 2018, 3:31 AM**

^ I saw that too. Does that have any relevance to the local economy though?

LouisVanDerWright · #**1650** Posted **Jun 20, 2018, 6:44 AM**

Quote:

Originally Posted by the urban politician

^ I saw that too. Does that have any relevance to the local economy though?

It just means our local blue Chip Walgreens continues to grow in relevance while GE basically self destructs. Nice bit of follow up news after their Post Office move!

tjp · #**1651** Posted **Jun 20, 2018, 3:16 PM**

Quote:

Originally Posted by marothisu

That is interesting. So in a week, Chicago area will have 4 total companies in the DJIA out of 30 total companies.

McDonalds, Caterpillar, and Walgreens. What's the fourth?

marothisu · #**1652** Posted **Jun 20, 2018, 3:55 PM**

Quote:

Originally Posted by tjp

McDonalds, Caterpillar, and Walgreens. What's the fourth?

Boeing

ardecila · #**1653** Posted **Jun 20, 2018, 4:53 PM**

Quote:

Originally Posted by jpIllInoIs

The Chicago Title & Trust 2 building never got built, only the parking base.
The Conservatory on Lake/Clark.
150 N Franklin
The redevelopment or addition to Thompson Center
Teardown and redevelopment of Harold Washington College
The niche hotel on Clark and Hubbard
Rehab of the Federal properties on S. State street.
Also the Macys building and Sullivan center are going to need to fill office space.

Dare I say... 55 W Wacker?

Also Michigan/Lake, the parking garage at Wabash/Randolph, etc. Could put a mid-sized office building where the Walgreen's is on Washington also next to the Reliance Building.

If the O'Hare Express retrenches the development value of this area for high-paying corporations, then we might see government shift around their land holdings. Cook County might try to cash out the Brunswick Building, for example.

LouisVanDerWright · #**1654** Posted **Jun 20, 2018, 6:57 PM**

The O'Hare superstation is ideally placed to serve both the CBD and main tourisn hubs. What exactly would it change to encourage offices to move back East? The critical mass of business services has migrated West. That's what is what has moved the offices, not proximity to OHare.

Most of the old class C and B office that housed critical, but lower rent, business services has been anhilated in the East Loop. Office is not moving back there because the highest and best use of that area was permenantly altered by Millennium Park. That's the "push" and the pull is proximity to Metra Stations which isn't going to change either. So no, the Loop is not the next Loop. The center of gravity of the CBD will continue to drift West as the handful of times your Employees will need to go straight from work to the airport is irelevant compared to the conveniece of their daily commutes. People don't build offices because travelers from out of town can get to their office from the airport 10 minutes quicker, they locate for their employees.

the urban politician · #**1655** Posted **Jun 20, 2018, 7:50 PM**

^ I agree, the CBD will still migrate west, but this development will at least continue to make the central Loop viable as a place to locate an office. It will give it a key advantage.

Companies do often cite proximity to O'Hare as a reason to locate here. With B37 being 12 minutes to the airport, you suddenly have a location downtown that is just as close to O'Hare as anything out in Rosemont or Elk Grove Village, etc--without the hassle of parking or dealing with TSA once you've arrived. There are also some industries, like Management Consulting, where employees literally fly to their clients every week.

So at least for some industries, this location may be appealing.

Chicagoguy · #**1656** Posted **Jun 20, 2018, 9:14 PM**

What I would love to see (especially with a completed high speed connection to O'Hare) is if United Airlines were to anchor a new massive tower attached to the Thompson Center. I know they have nearly outgrown all of their current space at Willis Tower, and it could be great marketing to have "Chicago's airline" be located across the street from the new Block 37 Superstation! These are massive pipe dreams I know.

ardecila · #**1657** Posted **Jun 21, 2018, 12:43 AM**

^ No, that actually raises a great point. I'm not sure how often United's HQ people visit the airport, but if it's a lot, then United could be a key user of Musk's system and may in fact strike some kind of bulk deal with him for United employees to travel between the airport and the downtown offices. In that scenario, I'm positive that UA would start looking for large blocks of space near Block 37.

chiphile · #**1658** Posted **Jun 21, 2018, 1:36 PM**

Quote:

Originally Posted by LouisVanDerWright

The O'Hare superstation is ideally placed to serve both the CBD and main tourisn hubs. What exactly would it change to encourage offices to move back East? The critical mass of business services has migrated West. That's what is what has moved the offices, not proximity to OHare.

Most of the old class C and B office that housed critical, but lower rent, business services has been anhilated in the East Loop. Office is not moving back there because the highest and best use of that area was permenantly altered by Millennium Park. That's the "push" and the pull is proximity to Metra Stations which isn't going to change either. So no, the Loop is not the next Loop. The center of gravity of the CBD will continue to drift West as the handful of times your Employees will need to go straight from work to the airport is irelevant compared to the conveniece of their daily commutes. People don't build offices because travelers from out of town can get to their office from the airport 10 minutes quicker, they locate for their employees.

I was thinking how B37 logistics would work, and it may be very tight. One side of a block is 300 feet, wrapped around you have 1200 feet of curbside space around an entire block. Terminal 1 at O'Hare alone has about 1100 feet of curbside drop off space, on TWO levels (so 2200 total), and then you multiply that by 4 for all the other terminals. If B37 happens, the traffic crunch may be unmanageable even with accounting for the fact that most people will use transit to get there.

Further, the changes to B37, removing the retail and making it more terminal-like, altering streets and curbs, converting the apartment to hotel (almost a given), would also be necessary to make it a true centerpiece terminal. If the actual station is just that cave in the basement, it would be a poor entrance to Chicago after getting off of Musk's train and would be worse than the Amtrak gates at Union Station right now.

Nevertheless, B37 would be a permanent economic shield and will prevent the east loop from ever losing value or competitive advantage to the office migration west. As stated, most new towers would still go west, but I can see at least 3-4 being built around B37, along with TONS of hotel conversions, and any employees who have to travel from the office will be 10 minutes away via just walking or cab or transit.

And, I see all that happening with or without TSA pre-clearance. But if there isn't security at B37, the new O'Hare stations should have it as soon as you step off the train.

the urban politician · #**1659** Posted **Jun 21, 2018, 1:53 PM**

^ Why would any retail have to be moved at all from B37?

You could run this whole operation from that subterranean cave. My understanding is that it’s pretty huge. After all, it was built exactly for this purpose—to be a huge downtown terminus.

I’m sure if Musk is business savvy he could score some local partners in building out the downtown terminus—perhaps a revenue sharing deal with the owner of B37 itself, and yes I love the idea of group corporate deals to use the express service. I can totally see that happen

chiphile · #**1660** Posted **Jun 21, 2018, 2:13 PM**

Quote:

Originally Posted by the urban politician

^ Why would any retail have to be moved at all from B37?

You could run this whole operation from that subterranean cave. My understanding is that it’s pretty huge. After all, it was built exactly for this purpose—to be a huge downtown terminus.

I’m sure if Musk is business savvy he could score some local partners in building out the downtown terminus—perhaps a revenue sharing deal with the owner of B37 itself, and yes I love the idea of group corporate deals to use the express service. I can totally see that happen

Not removed but perhaps relocated to create the high-ceiling grand airport terminal-like architecture. Most good terminals have plenty of retail anyway, but if 3 entire blocks are to be used as airport drop-off points (one for arrivals, one for departure, and one for ground/hotel shuttles), that curbside retail would have to move. I just think it would be awesome to have a literal airport terminal downtown, b/c who else has that(?), rather than the cave be just one thing underneath B37.