CHICAGO | Economic & Business Development

[bnk]

Originally Posted by galleyfox

Expect news soon on a Texas company relocating to @chicago - deal was recently signed!
https://twitter.com/chicagosamir/status/1441413644751826958?s=21

So, apparently the advertisements in Texas produced something. Huh.

The Twitter post didn't sound huge. It never stated what part of texas it was from either.



I don't expect this to be that big really but our Gov JB did send personal letters too to CEO's of


Dell, Oracle, and Hewlett Packard not to long ago at the same time to relocate their HQ's to Chicago.

But those could be a just a pipe dream though. It might only even just be a small law firm or something similar. But any relocation from texas is a total win in my book. I wouldn't even expect a large relocation of jobs or families established in texas. I would expect mostly local hires if it something really did happen outside of the managers and their peps.

https://www.independent.co.uk/news/world...texas-abortion-ban-adverts-b1926701.html


The link includes some quotes by JB that I do think have not been posted here yet.

[marothisu]

It's probably a medium sized company at a minimum. There have been companies that have moved from NYC, SF, and even India in the last year or 2 to Chicago without any fanfare other than a small blurb in some sort of obscure journal.

I doubt someone that high up in city government would flex their muscles for a small company. You never know but I'm guessing it's mid sized at a minimum

[SIGSEGV]

I'm hoping for Texas Instruments. Just because it would be funny. But I'm not sure they've fully recovered from the Texas power outages either...

NI would be good too, as much as I despise them.

[tjp]

I'm expecting it to be a small company. That tweet implies the move is related to the abortion law, but there's no way a large company could make a HQ decision that quickly.

[marothisu]

Originally Posted by tjp

I'm expecting it to be a small company. That tweet implies the move is related to the abortion law, but there's no way a large company could make a HQ decision that quickly.

Companies do weigh this stuff all the time. It could also be one who was already out the door or almost..

[galleyfox]

Originally Posted by tjp

I'm expecting it to be a small company. That tweet implies the move is related to the abortion law, but there's no way a large company could make a HQ decision that quickly.

Maybe it’s the reverse.

This company has probably been negotiating with the city for quite some time before the Texas law, and it’s either coincidental timing or the final straw for negotiations.

If there’s been a noticeable uptick in dissatisfied Texas companies talking to the Chicago economic people over the past months or years, putting advertisements in the TX newspapers and calling up CEOs would suddenly sound like a very good idea.

It’s probably large enough to start poking the media that there’s a story afoot.

[tjp]

I hope you're both right!

[Randomguy34]

Huh, this is a bit surprising, according to the 2020 census Chicagoland's median income ($80,586) is now HIGHER than NYC ($77,849) or LA metro ($75,000). This would imply our median income is underestimated in the 2019 ACS.

Data: https://www.census.gov/data/datasets/time-series/demo/cps/cps-asec.html



https://twitter.com/RyanRadia/status/1441345111049179144

[left of center]

Keep in mind that 2020 income numbers will include a *lot* of anomalies due to the pandemic. Most jobs that were lost in 2020 were lower income typically, such as at restaurants, bars, hotels, etc, while white collar workers typical were able to keep their jobs as they shifted to a WFH model. Because of that, average incomes in 2020 shot up relative to 2019, which of course does not account for all the unemployed people at the time.

[the urban politician]

^ Meh, for once let’s just take a win

Fuck NYC and LA

[Randomguy34]

Originally Posted by left of center

Keep in mind that 2020 income numbers will include a *lot* of anomalies due to the pandemic. Most jobs that were lost in 2020 were lower income typically, such as at restaurants, bars, hotels, etc, while white collar workers typical were able to keep their jobs as they shifted to a WFH model. Because of that, average incomes in 2020 shot up relative to 2019, which of course does not account for all the unemployed people at the time.

Good point! We probably will have anomalies in ACS data as well for 2021.

The question now is why are there disparities in how metro median incomes rose and dropped during the pandemic. Philly, especially, had the largest swing even though there aren't major demographics changes

[Randomguy34]

More good news for office leasing

Snapchat's parent eyes new Fulton Market offices

The parent of a popular social media app is planning to more than double the size of its office in Chicago and move it to a new Fulton Market District building, while a fast-growing Chicago-based transportation logistics firm has an even larger deal lined up to join them.

In one of two leases that are close to being finalized at 167 N. Green St., Santa Monica, Calif.-based Snap is in advanced talks to lease about 25,000 square feet at the 17-story building, according to sources familiar with the deal. Snap, best known for its disappearing photo and message app Snapchat, would relocate its local office there from a boutique office building the company leases today at 648 N. Clark St. in River North.

In the other deal, third-party logistics provider MoLo Solutions is nearing a lease of more than 93,000 square feet in the building, where it would relocate from the roughly 33,000 square feet it leases today nearby at 120 N. Racine Ave., sources close to the discussions said.
....
If the Snap and MoLo deals are finalized, they would also notch another pair of big leasing wins for Chicago developers Shapack Partners and Focus, which completed the 750,000-square-foot Green Street building late last year. Not including Snap and MoLo, the building is close to 70% leased, with a tenant roster that includes auto insurance claim software provider CCC Information Services, professional services firm Kroll (formerly Duff & Phelps), convenience store company Foxtrot Market, aviation maintenance company Jet Support Services and co-working provider WeWork.

https://www.chicagobusiness.com/commerci...s-firm-eye-chicago-fulton-market-offices

[the urban politician]

Way to go, Fulton Market!

[sentinel]

Found this article online, about under/overpriced real estate markets:

https://business.fau.edu/executive-education/housing-market-ranking/housing-top-100/

Chicago is not bad, at #75, with a 12.33% premium, compared to the most overpriced market currently, Boise at 80.66%

[left of center]

Did we ever find out what that Texas company that was going to move to the city is? Or is this something we wont learn for a few months?

[the urban politician]

Citadel's Griffin signals a move is in the future
Ken Griffin today gave his most explicit warning to date on whether his investment empire will remain headquartered in Chicago. The problem: out of control crime.
STEVE DANIELS

Ken Griffin

Citadel founder Ken Griffin, leveling harsh criticism at Gov. J.B. Pritzker at an event today before the Economic Club of Chicago, gave his most explicit warning to date on whether his investment empire will remain headquartered in Chicago.

"It's probably measured in years, not decades, if we don't change course," he said.

"Chicago has become smaller on a relative basis," he said.

Crime is out of control in Chicago, Griffin said, and political leaders are doing little to address it. "It is a disgrace that our governor won't insert himself into the challenge of addressing crime in our city."

Many of Griffin's criticisms were ones he's made before, but the focus on crime was an addition to past critiques centered more on fiscal management, such as underfunded public-worker pensions and inadequate public education.

Griffin said he spoke with Pritzker on the phone when looting and unrest were afflicting Chicago following the murder of George Floyd. He advocating to Pritzker bringing in the National Guard to restore order, he said.

"He says, 'It won't look good for there to be men and women on Michigan Avenue with assault weapons,' " Griffin said. "If that saves the life of a child, I don't care."

Griffin's criticisms of the Democratic Party in Illinois aren't new, but his warnings about Citadel's continued presence in Chicago take the argument to a new level.

Citadel employs 500 in Chicago in its hedge-fund business. Another 650 work here for Citadel Securities, a separate company owned by Griffin that is a market maker for retail brokerages.

"We now have well over 1,000 people in New York," he said. "It's become the center point for our hedge fund. It's becoming ever more difficult to have this as our global headquarters, a city which has so much violence. I mean, Chicago is like Afghanistan—on a good day. That's a problem."

He said carjackers had attacked his own security detail outside his Chicago home. "It didn't go so well for the carjacker," he said. He didn't give details about the incident.


But the broader point: "There is nowhere you can feel safe today walking home at 9:30 at night," said. "And you worry about your kids going to and from school. That's no way for our city to exist. And it's really hard to recruit people to Chicago when they read the headlines, they know the facts. I can't look people in the eye like I did 20 years ago: 'This is a great place to raise a family. This is a great place to call home.' . . .I can’t give that same speech today."

https://www.chicagobusiness.com/finance-...ther-investment-empire-will-stay-chicago

[moorhosj1]

Originally Posted by the urban politician

https://www.chicagobusiness.com/finance-...ther-investment-empire-will-stay-chicago

He's not wrong, it's just hard to separate from him from all the political positions he started funding 10 years ago. Is this an honest discussion he wants to have or is it political fodder for funding the next mayoral/gubernatorial campaign?

[the urban politician]

^ I do wonder if he is thinking about running for office.

If you look at the article now, a lot was added since I posted it about an hour ago.

He apparently is getting a lot of support from the Economic Club of Chicago:

He warned that universities in the Sun Belt are improving, potentially creating a situation where the ease of doing business there trumps “the richness of human capital” produced by the U of C and Northwestern, among others.

Griffin took obvious pride in his central role in defeating one of Pritzker’s top priorities: a proposed state constitutional amendment to allow for a progressive income tax. Asked if there was a limit to his political entanglements and willingness to spend money to advance his beliefs, Griffin said, “We went pretty far on the fair tax bill, if I may say so.”

“We resoundingly defeated the governor—and resounding is the right choice of words, too,” he added. “We did for one simple reason: He’s not just coming for the rich; he’s coming for everybody. The graduated tax bill in Illinois was just another mechanism to take more money from the hands of hard-working Illinois families and putting it into the coffers of Springfield. And I know every person in this room would sign up for higher taxes if it meant reform of our pension plans and an end to corruption.”

That garnered perhaps the most enthusiastic applause from the luncheon crowd of the several Griffin received.

To illustrate the corruption, Griffin took a shot at a fellow corporate citizen of Chicago: energy conglomerate Exelon. The wide-ranging energy law Pritzker won last month from lawmakers in Springfield included hundreds of millions in ratepayer subsidies to the company to keep it from closing nuclear power plants it said it were doomed due to low wholesale energy prices.

[sentinel]

Originally Posted by the urban politician

https://www.chicagobusiness.com/finance-...ther-investment-empire-will-stay-chicago

I think Ken Griffin should be more concerned about market rigging that Citadel has been engaging in, and the fact that the SEC is more closely scrutinizing their role. Frankly, this smells like a diversionary tactic.

https://i.redd.it/6r48pxf9far71.png

https://fxnewsgroup.com/forex-news/retai...m-robinhood-citadel-securities-for-pfof/

Edit: Highlighting an interesting portion of linked article:

"Could another Madoff be lurking in the shadows, waiting to tip cover and cause another financial crash? Easily. Just the other week a family office—a largely unregulated bank-like financial entity that is intended to invest the fortune of a single family or individual—called Archegos Capital Management was found to have sold off a reported $20 to $30 billion, shocking the financial world and sending huge price fluctuations around the world.

Some of the systems that Madoff created, like “payment for order flow,” which many experts contend is tantamount to a kickback and borderline fraud, is now the primary way trading apps like Robinhood make their money. In fact, as the GameStop drama unfolded, it was revealed that Citadel Securities was paying Robinhood to process all those GameStop stock purchases, possibly making millions by selling inflated shares to unsophisticated investors. But then again, we may never know what really happened, because Citadel is veiled in secrecy, free to keep any ill-gotten profits, just as long as it doesn’t happen to implode during a financial crisis. Bernie Madoff is dead, long live Bernie Madoff.

https://newrepublic.com/article/162053/bernie-madoff-dead-hedge-fund-regulation

[galleyfox]

Originally Posted by sentinel

I think Ken Griffin should be more concerned about market rigging that Citadel has been engaging in, and the fact that the SEC is more closely scrutinizing their role. Frankly, this smells like a diversionary tactic.

Class action lawsuits like the one filed recently do tend to get messy.

Honestly, after Covid and WFH, I don‘t really care that much about billionaires and their midlife crises and scandals.

Citadel Securities Faces New Pressure Over GameStop Frenzy
https://www.google.com/amp/s/www.wsj.com...ressure-over-gamestop-frenzy-11632863151

Gensler zeroes in on Citadel Securities as SEC considers payment for order flow ban

https://finance.yahoo.com/news/gensler-z...ayment-for-order-flow-ban-191715790.html

Citadel Securities uses social media to battle online trolls

https://www.google.com/amp/s/amp.ft.com/content/58dd7e9d-9483-4ec7-9fdf-1a45f373e8b5

Citadel Securities Says It Learned of Trading Curbs on Twitter
https://news.bloomberglaw.com/securities...s-it-learned-of-trading-curbs-on-twitter