CHICAGO | Economic & Business Development

[Handro]

So the Fed just cut interest rates for the first time since 2008--is that a good thing for the many Chicago proposals or a sign of something bad around the corner?

[marothisu]

Originally Posted by Handro

So the Fed just cut interest rates for the first time since 2008--is that a good thing for the many Chicago proposals or a sign of something bad around the corner?

Could be both..

[marothisu]

Improvement

Illinois finances get a jolt of good news from Fitch

https://www.chicagobusiness.com/greg...ood-news-fitch

Illinois finances are improving, and as a result, the state no longer is on negative credit watch.

That's the verdict from Fitch Ratings today as the bond rater revised its outlook on Illinois finances from negative to stable—less that a full upgrade of state debt, but a clear sign of brightening financial prospects.

In a statement, the New York firm attributed its decision to "key developments over the last three months,” including enactment of "an on-time fiscal 2020 budget," and an upturn of revenues from the tax law pushed through by President Donald Trump.

"The state now has a plausible and achievable 2020 budget plan," with less reliance on one-time revenues, Fitch said.

It notably added, "The recent gains, however, are somewhat tenuous and their sustainability hinges on the state’s actions over the next several years, particularly around the November 2020 initiative on the graduated individual income tax."

[the urban politician]

Common sense:

Can’t find a decent job in my industry? I leave. Good paying jobs in my industry? I come.

Chicago, as former Governor Rauner put it, is undergoing a “rewiring” of its economy. That rewiring makes it look like we are simply running in place all of the time. Hopefully we come out the other end of this with some substantial growth. Those job numbers posted earlier look reassuring, but we shall see.

[LouisVanDerWright]

I have to say, if my tenant interactions are any indication, the market here continues to to become more and more intensely high skilled. The last 6 or 7 showings I've had in little village were all six figure salaries with 700+ credit scores moving here from outside of the metro. Obviously that's probably got something to do with the trajectory of my particular corner, but also tells me we are full up in a lot of other places which is continuing to push the middle income professionals into areas they wouldn't otherwise consider.

[the urban politician]

Originally Posted by LouisVanDerWright

I have to say, if my tenant interactions are any indication, the market here continues to to become more and more intensely high skilled. The last 6 or 7 showings I've had in little village were all six figure salaries with 700+ credit scores moving here from outside of the metro. Obviously that's probably got something to do with the trajectory of my particular corner, but also tells me we are full up in a lot of other places which is continuing to push the middle income professionals into areas they wouldn't otherwise consider.

That's encouraging to hear, since before you had told me that most tenants in that area are in "gig" kinds of jobs, or "alternative" industries.

Maybe I'll finally pull the trigger on a cheap rehab down there, since there seem to be no cheap properties left in gentrifying areas of the city.

[IrishIllini]

Surprised to hear transplants with good jobs are looking at housing in Little Village. Not an area on the radar for most locals with that income, so curious to know why transplants are making their way there.

It’ll be interesting to see how local companies brace for the onset of mass retirements. An increase of 200,000 people over 55 in the workforce is extreme, especially since the 24-54 cohort shrank during this time. A lot of people 55+ will work into their 70s (by choice or necessity), but most will leave the workforce...by choice or

[marothisu]

It's all consistent with the data I've been posting on here for the last few years. There's only 12 or 13 cities in the country where under $30K households AND $30K to $100K households are decreasing, but above $100K are increasing. Chicago is one of them. Others include NYC, Boston, DC, San Francisco, San Jose, etc. Again, not necessarily a 100% good thing, but still consistent with it.

Chicago area is still one of the top places in the country for in migration (https://flowsmapper.geo.census.gov/map.html)

[the urban politician]

Originally Posted by IrishIllini

Surprised to hear transplants with good jobs are looking at housing in Little Village. Not an area on the radar for most locals with that income, so curious to know why transplants are making their way there.

^ In a way, it's not that surprising to me.

I can see locals having more of a bias against a "scary south side" neighborhood like LV than an out of towner who is less likely to be "tainted" by these local biases.

In fact, it totally makes sense.

[IrishIllini]

Originally Posted by the urban politician

^ In a way, it's not that surprising to me.

I can see locals having more of a bias against a "scary south side" neighborhood like LV than an out of towner who is less likely to be "tainted" by these local biases.

In fact, it totally makes sense.

Idk. Anecdotally, most transplants I know (esp at that income) ended up in Lakeview East, Lincoln or Wicker Park, and River North because those are the neighborhoods people from out of town have some familiarity with. I’d think the perception of Chicago as a scary and dangerous place would drive transplants to those safe havens and high income locals would be the first to branch out into Little Village. I’d be surprised if the first wave of the gentry in east Pilsen didn’t grow up in the suburbs.

[the urban politician]

Fast growing tech firm expanding in River North:

https://therealdeal.com/chicago/2019...-inmates-more/

[the urban politician]

I'm really hoping we see some traction on this front. I'm glad the Sterling Bay is trying to develop out this sector. Looks like they have this in mind for Lincoln Yards:

Sterling Bay hires IIT tech park leader for life sciences push
Catherine Vorwald will lead the developer's effort to address a lab space shortage in the city.


The biomedical industry veteran who helped fill up one of Chicago's only destinations for life sciences start-ups has joined Sterling Bay to help the developer make its own run at boosting high-quality lab space in the city.

Catherine Vorwald, who assisted in the launch of and oversaw marketing and leasing at the University Technology Park at the Illinois Institute of Technology, will run Sterling Bay's new life sciences division, the developer announced.

The hire aligns one of the biggest champions of lab space leasing in Chicago with one of the city's highest-profile real estate firms to pursue a property sector that experts say is desperately short on supply. While biotechnology and pharmaceutical breakthroughs often take root at Chicago area research institutions, the companies that grow out of them typically flee to mature life sciences markets like Boston, San Francisco and North Carolina because Chicago doesn't have the facilities to scale their businesses locally.

Vorwald is tasked with helping change that dynamic.

https://www.chicagobusiness.com/comm...-sciences-push

[Buckman821]

Originally Posted by the urban politician

I'm really hoping we see some traction on this front. I'm glad the Sterling Bay is trying to develop out this sector. Looks like they have this in mind for Lincoln Yards:

Would be awesome to see this happen but I'm skeptical. Chicago is not even close to being on the life sciences map right now.

[the urban politician]

Originally Posted by Buckman821

Would be awesome to see this happen but I'm skeptical. Chicago is not even close to being on the life sciences map right now.

Not sure why the skepticism. I mean, isn't that the whole point of what SB is doing?

[LouisVanDerWright]

Originally Posted by IrishIllini

Idk. Anecdotally, most transplants I know (esp at that income) ended up in Lakeview East, Lincoln or Wicker Park, and River North because those are the neighborhoods people from out of town have some familiarity with. I’d think the perception of Chicago as a scary and dangerous place would drive transplants to those safe havens and high income locals would be the first to branch out into Little Village. I’d be surprised if the first wave of the gentry in east Pilsen didn’t grow up in the suburbs.

Don't discount the fact that there are plenty of places in the US that make many Chicago neighborhoods look downright suburban when it comes to blight and crime.

Again, only an ancedote, but one couple living in my buildings moved here from Providence RI which is apparently a shit show. They love my corner of LV and littlerally just said to me last night "moving to Chicago was the best choice we ever made".

They are getting married in fall and just upgraded to a bigger pricier unit because the wife has gotten three promotions since arriving here (equating to a $20k a year raise) and the husband is about to finish school. They originally relocated because the wife works for Peapod and was offered a better package if she moved here. The husband left the Army just before they relocated and is cashing in on his GI Bill at UIC. She was making $70k/yr when they relocated and now is pushing six figures, they will be a $150k+/yr household once husband lands his first non military job after graduation after fall semester this year.

[the urban politician]

Chicago Ranks No. 3 on List of Cities Growing Tech Talent Pools
By Katherine Davis - July 29, 2019

Chicago may not be one of the nation’s largest tech hubs, but new data shows that the area is gaining momentum when it comes to growing the amount of tech talent in the city.

Commercial real estate and investment firm CBRE ranks Chicago No. 3 on its list of tech talent momentum markets, which measures the growth acceleration of tech labor pools across 50 U.S. and Canadian markets.

The data shows that Chicago’s tech labor force grew 8 percentage points faster in the last two years (2017 and 2018) than the previous two-year period (2015 and 2016). Since 2013, Chicago’s tech talent pool has grown 10.5 percent, or by about 166,620 workers, making it the sixth largest tech market in the country.

Chicago was beat by Orlando, which came in at No. 1 for growing its tech workforce by 14.1 percentage points. San Diego, came in at No. 2. for growing its tech labor pool by 10.2 points. Among the top 10, Chicago was followed by Cleveland, Long Island, N.Y., Denver, Portland, Los Angeles, Detroit and Hartford, Conn.

https://www.americaninno.com/chicago...-talent-pools/

[marothisu]

Originally Posted by LouisVanDerWright

Don't discount the fact that there are plenty of places in the US that make many Chicago neighborhoods look downright suburban when it comes to blight and crime.

Again, only an ancedote, but one couple living in my buildings moved here from Providence RI which is apparently a shit show. They love my corner of LV and littlerally just said to me last night "moving to Chicago was the best choice we ever made".

They are getting married in fall and just upgraded to a bigger pricier unit because the wife has gotten three promotions since arriving here (equating to a $20k a year raise) and the husband is about to finish school. They originally relocated because the wife works for Peapod and was offered a better package if she moved here. The husband left the Army just before they relocated and is cashing in on his GI Bill at UIC. She was making $70k/yr when they relocated and now is pushing six figures, they will be a $150k+/yr household once husband lands his first non military job after graduation after fall semester this year.

The Census Tract right around the California stop had 12.1% of its households at $100K+/year in 2017 - in 2012 that number was 7.1%. If you go down a little and make it $60K+/year then it's at 22% in 2017 but in 2012 it was 13.7%. One of the tracts south of there, mainly between 24th place, 26th, California, and Sacramento (with a sliver that goes up to Cermak) is at 25.6% making $60K+ but in 2012 it was 17.8%.

These numbers aren't super high but they definitely show an increase of decent household incomes in that area. I bet the $60K+ number is at 25% now around the California stop.

[the urban politician]

500 jobs coming to da South Side:

https://therealdeal.com/chicago/2019...-neighborhood/

[glowrock]

Originally Posted by the urban politician

500 jobs coming to da South Side:

https://therealdeal.com/chicago/2019...-neighborhood/

I think this is great news! I'm glad that this partnership with Common is starting to show dividends. For sure the South Side needs some love. I honestly know little about the Far South Side such as the area this will be built in, but still, nice to see the developments spreading outside the Loop/North side!

Aaron (Glowrock)

[ardecila]

Originally Posted by marothisu

The Census Tract right around the California stop had 12.1% of its households at $100K+/year in 2017 - in 2012 that number was 7.1%. If you go down a little and make it $60K+/year then it's at 22% in 2017 but in 2012 it was 13.7%. One of the tracts south of there, mainly between 24th place, 26th, California, and Sacramento (with a sliver that goes up to Cermak) is at 25.6% making $60K+ but in 2012 it was 17.8%.

These numbers aren't super high but they definitely show an increase of decent household incomes in that area. I bet the $60K+ number is at 25% now around the California stop.

Is this data really reliable at the tract level outside of the decennial census?