CHICAGO | Economic & Business Development

[marothisu]

Next Detroit you guys. Isn't this multiple times in a row that this has happened?


Chicago Business Barometer Unexpectedly Indicates Faster Growth In June

https://www.nasdaq.com/article/chica...20180629-00497

Chicago-area business activity unexpectedly grew at a faster rate in the month of June, according to a report released by MNI Indicators on Friday.

MNI Indicators said its Chicago business barometer climbed to 64.1 in June from 62.7 in May, with a reading above 50 indicating growth. Economists had expected the index to drop to 60.0.

The unexpected increase by the business barometer was partly due to continued growth by the new orders index, which rose for the second straight month to a five-month high.

[LouisVanDerWright]

Yes an some other regional PMI's and economic indicators on the East Coast and the South have shown some degree of weakness. The Philly Fed just came in below estimates a week or two ago for example.

[bnk]

https://www.bizjournals.com/chicago/...-aircraft.html

Boeing is buying Embraer's commercial aircraft business



By Heather Hartel – Correspondent, Chicago Business Journal
8 hours ago

Boeing is taking over the $4.75 billion commercial airplane and services business of Brazil’s Embraer SA.

In a deal announced on Thursday, the two companies agreed to Boeing purchasing a controlling stake in Embraer’s commercial airplane business.
Embraer is the world’s third-largest producer of civil aircraft after European Airbus and Chicago-based Boeing.

The new joint venture should make Boeing a leader in the market for smaller passenger planes.

Under the terms of the deal, Boeing will have an 80 percent ownership stake in the business, with Embraer keeping 20 percent ownership. Boeing’s 80 percent stake is valued at $3.8 billion.
The two companies have been courting a potential deal for months now, with heavy skepticism from the Brazilian government about a U.S. company influencing Brazilian military programs. However,

…



Management will report directly to Boeing CEO Dennis Muilenburg.
"By forging this strategic partnership, we will be ideally positioned to generate significant value for both companies' customers, employees and shareholders – and for Brazil and the United States," Muilenburg said.
According to Boeing, the venture is expected to create

...

In addition to this Boeing-Embraer deal, the two companies plan to create another joint venture focused on the KC-390 multi-mission aircraft aimed at developing new markets for defense products.

Boeing Co. (NYSE: BA) is based in Chicago and is the largest exporter in the U.S. by dollar value. Boeing stock is a component of the Dow Jones Industrial Average.

[bnk]

...

[the urban politician]

Check out today’s Crains. A letter from Crains to Amazon regarding HQ2

[jpIllInoIs]

Originally Posted by the urban politician

Check out today’s Crains. A letter from Crains to Amazon regarding HQ2

Someone has been peeking at SSP It was time for Crains to do a little boosterism. Most of the City Biz rags do nothing but cheer-leading.

[sixo1]

Amid tariffs war, Emanuel heads to China to save $1.3 billion CTA deal

http://www.chicagobusiness.com/artic...llion-cta-deal

from the above article:

Also in China, the mayor said he expects to announce new nonstop air service between Chicago and China, and a deal in which the Bank of China will add 40 to 50 jobs here.

[the urban politician]

Chinese investment in Chicago is still a trickle, but there is a TON we can tap there. The increase in immigration alone could really transform some of our hoods. I’m in Queens right now and it’s astounding—whole swaths have turned Chinese—you don’t see a single white person walking around for blocks.

Chicago will probably never see that much immigration, but we can still see a lot more. I’m hoping the increased internationalization of O’hare will help.

[ardecila]

It's not not happening. We'll just never have that kind of concentration, because there's nothing stopping Chicago's Chinese population from continuing to expand along Archer Ave into increasingly low-density neighborhoods and diluting existing Mexican communities.

The Latino community in McKinley Park, Brighton Park etc does not have the same established institutions and community solidarity that you find in Pilsen, LV or Logan Square to push back against the intrusion of a new group. On the other hand, there's not a "Latino flight" from Bridgeport, McKinley, Brighton either. Latinos in these areas have a similar economic profile to the newcomers, so they aren't being forced out by rising rents. Nor do these Latinos suddenly have higher incomes and can afford to leave for greener pastures. It's a very gradual transition as Chinese investors buy buildings and then market them within the Chinese community. I imagine the more dramatic transitions in NY's outer boroughs happened because the previous group was leaving in large numbers at the same time as Chinese were arriving.

With that being said, the Chinese hoods do have some dense infill that rivals anything on the North Side for density and reminds me of Queens. Just raw dense urban housing with no frills. I did work at a walkup apartment in Armour Square recently, it was way more urban than anything else I've seen in Chicago. 5-story walkup with 12 units on a standard double lot.

[the urban politician]

Originally Posted by ardecila

It's not not happening. We'll just never have that kind of concentration, because there's nothing stopping Chicago's Chinese population from continuing to expand along Archer Ave.

I think that’s what I mean. We already have a nexus in Chinatown, but the growth outward from that hub is a process I would like to see continue.

Flushing, NY is hardly a hub like a Chinatown. It’s basically an entire district of the city with multiple commercial corridors that are heavily Chinese.

My cousin who lives here tells me that 20 years ago this area was all white (I remember seeing it that way), and it dramatically changed before his eyes.

[ardecila]

^ I'd be interested to know what process led the white residents of Flushing to leave in such short order. Generational change? Racism? Gentrification?

I imagine transitions happen more fluidly in neighborhoods that are largely rental vs. owner-occupied. Flushing is still largely rentals, whereas the Chicago neighborhoods we're talking about have a much higher percentage of owner-occupied homes. Even Bridgeport, which is the closest to the Loop, still has many one-story 60s bungalows and 1800s worker cottages. It's much harder to displace a community that owns their own homes.

[marothisu]

I love Flushing because the Chinese food there is vastly superior to that of Manhattan and some places are very legitimately authentic and even considered good if they were located in China (though Manhattan in the last few years has gotten a handful of legit non-Cantonese Chinese places - I'll give them that. Mostly in East Village area too). Last summer, I had an intern of Chinese descent from Flushing who told me when he was growing up, it was all Irish bars and stuff like that, but now where his parents live is mostly Chinese. I think in a way it's similar to Bridgeport in that it went from being pretty white European to not too much. Though Flushing is a lot more Asian and Bridgeport is still a lot more White (30% White in Bridgeport versus 10% in Flushing), but there are other ethnicities in Asia there. I have a few coworkers who are originally from Bangladesh and India who live there too, and I've eaten at Korean restaurants in Flushing, and know there are a number of Koreans there too.

My girlfriend (again who is from China) looooves Flushing and all her friends do too, but none of them live there. Why? I just asked her, and she said first of all it's too far away from the job (Manhattan). She also loves Manhattan for hanging out in various areas, like East Village and Soho, so there's that. She said "If you come all the way to NYC, then you want to hang out with non Chinese people too. If you move to Flushing then it's just all Chinese people and what's the point? You might as well just stay in China." She used to live in Astoria which is kind of halfway between Flushing and Midtown Manhattan. Not many of her friends from China live in Manhattan, but inside of NYC most of them live in Queens - Astoria, Rego Park, Long Island City, Elmhurst, and one lives in Roosevelt Island. A handful of others live in Jersey City, NJ and a few others in places like Union City, NJ. These places in Queens are kind of a compromise between Flushing, their jobs in Manhattan, and areas of Manhattan they love like East Village, Soho, etc. I've almost never hung out with any of her friends in Chinatown - they aren't really big fans of it other than getting cheap groceries at a few markets (which they have in Queens anyway). Inside of NYC at least, Queens is a massive port of entry right now and you will find people from other countries who can afford Manhattan sometimes opt for Queens because of it. I just had a coworker originally from Sri Lanka move from my neighborhood in Manhattan to Queens partially because of this.

In my opinion though, the growth of areas in this regard in Chicago versus NYC is different and more economic. As I've stated before, my girlfriend has told me on numerous occasions "Chinese people love Chicago." By that, I really think she means downtown and some surrounding areas. She has told me that living in a nice high rise for Chinese people, at least younger ones, is much more of a status symbol than say it is for people from India. This type of thing is much more attainable in Chicago downtown than it is in Manhattan. I do believe that a lot of the younger people from China moving to Queens would probably love to live in Manhattan if they could afford living in a luxury high rise, but like most people, can't afford it. Queens or Jersey City is a complete compromise. On the other hand, these same jobs in Chicago will afford way more people the ability to live in a high rise downtown. I think as a result, this is why you see that population opt more for downtown than somewhere like Bridgeport or Chinatown. I see Bridgeport, McKinley Park, Chinatown, etc more as where either families who aren't making a ton of money (i.e. who cannot afford a $700K 3 bedroom condo downtown comfortably) move or where people with not a ton of money move. If the prices in Chicago went up a lot more downtown, you might see some of these areas increase even more. However, I think you'd also see a larger increase in areas like Lincoln Park, Lakeview, West Town, etc to be honest.

If you hang out enough though in areas like East Village, you'll see a lot of Chinese people around. Like yes, they want a taste of home but a lot are just foodies in every sense and love trying new things. A lot of ingredients for home cooking can be found in the markets in Manhattan (and they can be cheap, though they're even cheaper in Flushing). My girlfriend cooks at home a bit as do her friends, and they don't CLAMOR for just any Chinese restaurant. It's usually just the ones that have things they can't make at home or find easily where they end up going out to. I at least get the sense from them that they would totally live in Manhattan if they could and I think in Chicago that type of thing (luxury high rise) is way more attainable.

[SIGSEGV]

South Loop appears to have a pretty large Asian population already. Riding the 4 between UC and Downtown over the last few years, it feels like there has been a significant increase in both East Asian and Indian populations along Michigan between 26th and 31st.

[ardecila]

That's basically Prairie Shores... I thought it had a lot of Asians too, but it's only about a third of the population in the complex according to 2016 ACS data. Lake Meadows is about a quarter Asian and South Commons even less. Compare that to areas west of the Dan Ryan which range from 50-80% Asian.

Asians may account for a higher percentage of the bus riders at Prairie Shores, though, if they are disproportionately likely to work downtown compared to the blacks and whites who also live there. I'm pretty sure everyone gets a parking space, the white people who choose to live there probably do so because they work jobs on the South Side that they likely drive to.

[marothisu]

^ If you remember, I already calculated these populations 6 months ago.

Here's Asian alone population by community area
2016 Asian Alone population by community area
1. West Ridge: 16,753 people
2. Bridgeport: 12,237 people
3. Near West Side: 10,324 people
4. Armour Square: 10,278 people
5. Near North Side: 10,009 people
6. Albany Park: 7946 people
7. Lake View: 6781 people
8. Edgewater: 6580 people
9. The Loop: 6180 people
10. Uptown: 5791 people
11. Near South Side: 5386 people
12. North Park: 5149 people
13. Irving Park: 4672 people
14. Lincoln Square: 4668 people
15. Lincoln Park: 4257 people
16. West Town: 3454 people
17. Brighton Park: 3285 people
18. Hyde Park: 3249 people
19. Rogers Park: 3233 people
20. Portage Park: 2988 people
21. McKinley Park: 2918 people
22. Douglas: 2661 people
23. Jefferson Park: 2627 people
24. Logan Square: 2459 people
25. O'Hare: 2004 people

Between Near North, South, West, and the Loop there are nearly 32,000 people of Asian Alone descent. Add in Bridgeport, Armour Square, Hyde Park, Douglas, Brighton Park, McKinley Park, and Kenwood then it's nearly 70,000 people of Asian Alone descent.



Top Increases, 2010 to 2016. Asian Alone population
1. Near West Side: +3227 people (asian alone)
2. The Loop: +3027 people
3. Near South Side: +2961 people
4. Near North Side: +2937 people
5. Armour Square: +1217 people
6. Albany Park: +1012 people
7. Bridgeport: +963 people
8. Brighton Park: +932 people
9. Douglas: +886 people
10. West Town: +612 people
11. Hyde Park: +522 people
12. Lower West Side: +501 people
13. Jefferson Park: +499 people
14. West Ridge: +448 people
15T. Archer Heights: +443 people
15T. Lake View: +443 people
17. Woodlawn: +417 people
18. Mount Greenwood: +360 people
19. O'Hare: +355 people
20. Lincoln Park: +350 people

Near North, West, South, and the Loop combined increased by over 12,000 people of Asian alone descent from 2010 to 2016. The area of Chinatown, Douglas, Bridgeport, Brighton Park, McKinley Park, Kenwood, Hyde Park, Lower West Side and Woodlawn increased by nearly 6600 people. Nice increase but essentially half of what "downtown" increased at. All of those areas together though had an increase of 19,000 asian alone.


Top Decreases, 2010 to 2016. Asian Alone population
1. Uptown: -1625 people
2. Norwood Park: -601 people
3. Dunning: -409 people
4. Edgewater: -394 people
5. Garfield Ridge: -369 people
6. North Park: -269 people
7T. Forest Glen: -247 people
7T. Morgan Park: -247 people
9. Portage Park: -233 people
10. Ashburn: -159 people
11. Logan Square: -151 people
12. Lincoln Square: -88 people
13. Calumet Heights: -60 people
14T. Belmont Cragin: -53 people
14T. East Garfield Park: -53 people





Here is foreign born for example for just China and India from a post I did 6 months ago:

Originally Posted by marothisu

Ask and you shall receive...at least for Born in China and India populations by community area.

Downtown area has about 7000 people born in China now. That's an increase of nearly 3700 people since 2010. Now, if you add in Bridgeport, Armour Square, Brighton Park, McKinley Park, Douglas, Kenwood, and Hyde Park, then there are just over 30,000 people born in China living in that area. An increase of about 8000 people since 2010.

...

Born in China, Change from 2010 to 2016:
1. Near West Side: +1406 people born in China
2. Armour Square: +1350
3. The Loop: +1063
4. Douglas: +816
5. Brighton Park: +629
6. Near South Side: +621
7. Bridgeport: +588
8. Near North Side: +579
9. Kenwood: +535
10. Hyde Park: +334
11. Archer Heights: +235
12. Lincoln Park: +189
13. New City (Back of the Yards): +187
14. Lake View: +164
15. Albany Park: +161
16. Norwood Park: +159
17. Lincoln Square: +124
18. Dunning: +122
19. West Elsdon: +119
20. West Town: +102

2016 By Total Number of People Born in China
1. Bridgeport: 8300 people born in China
2. Armour Square: 7567
3. Near West Side: 2609
4. Brighton Park: 2083
5. McKinley Park: 1949
6. Near North Side: 1655
7. The Loop: 1646
8. Douglas: 1222
9. Hyde Park: 1191
10. Near South Side: 1054
11. Lake View: 837
12. Kenwood: 746
13. West Ridge: 555
14. Edgewater: 543
15. Lincoln Park: 540
16. New City (Back of the Yards): 470
17. Albany Park: 405
18. Uptown: 392
19. Rogers Park 356
20. Lincoln Square: 277


Born in India, Change from 2010 to 2016:
1. Near North Side: +572 people born in India
2. Loop: +488
3. North Park: +469
4. Edgewater: +314
5. Near South Side: +304
6. Albany Park: +233
7. Douglas: +224
8. Rogers Park: +203
9. Near West Side: +186
10. Lincoln Park: +125
11. West Ridge: +121
12. North Center: +120
13. Lake View: +105
14. Austin: +82
15. Woodlawn: +80
16. Lower West Side: +78
17. Edison Park: +76
18. Montclare: +73
19. South Lawndale: +53
20. Hyde Park: +49

2016 By Total Number of People Born in India
1. West Ridge: 3437 people born in India
2. Near West Side: 1916
3. Near North Side: 1829
4. Albany Park: 1368
5. Edgewater: 1276
6. The Loop: 1204
7. Lake View: 1000
8. North Park: 970
9. Douglas: 618
10. Near South Side: 617
11. Lincoln Park: 463
12. Lincoln Square: 444
13. O'Hare: 432
14. Uptown: 413
15. Irving Park: 412
16. Rogers Park: 396
17. Hyde Park: 313
18. Forest Glen: 241
19. West Town: 233
20. North Center: 218

[Randomguy34]

More industrial development news in the city

Mayor Emanuel Announces Major New Distribution Center on Chicago’s Southeast Side
$169 Million Project to Generate 2,000 Jobs and Add Two Million Square Feet of Industrial Space

Mayor Rahm Emanuel today joined Ald. Sue Sadlowski Garza (10th) and NorthPoint Development to announce a $169 million industrial complex that will strengthen Chicago’s Southeast Side position as an epicenter of transportation and logistics for the entire Midwest.

“As Chicago continues to strengthen its economy, the City is working to ensure each of our neighborhoods grow with us,” said Mayor Emanuel. “Today marks the latest investment in the Southeast Side that will create more jobs and more opportunities for this community while keeping us on the cutting edge of a dynamic industry.”

Planned for a 196-acre site at 116th Street and Avenue O, the 2.2 million-square-foot project is planned to include six state-of-the art industrial buildings ranging in size from 215,000 square feet to 600,000 square feet. Each new building would be for one or more firms, starting with a 361,000 square foot structure to be built on spec on the 12200 block of South Burley.

The new structures will complement NorthPoint’s adjacent, 155-acre supplier park that serves Ford’s nearby Torrence Avenue assembly plant, creating one of the largest industrial parks in Chicago. Tenants would leverage the site’s location at the nexus of numerous interstate and rail lines within the Lake Calumet Industrial Corridor. More than 1,300 permanent and 650 construction jobs are expected to be generated by the project.

https://medium.com/@ChicagosMayor/ma...e-f3ee7abfc560

[marothisu]

^ That's good. That little area has seen a little bit of action the last 5 or so years which is great for the surrounding neighborhoods and suburbs. I'm curious if this all goes through if we'll see a little uptick in property purchases in areas like Hegewisch, Pullman, etc. Their numbers are still pretty low every month even compared to areas like South Shore.

[killaviews]

I always wondered if some of these large old industrial areas could be used build call centers or operations centers. The economics don't work out to build call centers in or near downtown, I wonder if it would work out in the far south side. Could a call center industry be competitive with say Phoenix?

[jpIllInoIs]

Originally Posted by killaviews

I always wondered if some of these large old industrial areas could be used build call centers or operations centers. The economics don't work out to build call centers in or near downtown, I wonder if it would work out in the far south side. Could a call center industry be competitive with say Phoenix?

Call centers also have to compete with Tampa & Orlando. But why would this land be a good candidate for that? The human environment would suck. This is brownfield redevelopment to high end logistics/distribution. That is a market segment that Chicago can and is dominating. Very few locations offer the Rail to Truck/ Truck to truck transfer and connections to compete with Chicago. And the logistics industry will grow exponentially due to the online shopping and Chicago's place as 3rd largest metro and largest Rail Center in the nation. The marketplace is working according to demand.

[MayorOfChicago]

Crains reporting that the CEO of Kellogg bought a home in Lincoln Park for $5.6M in May. Might be in indication they're thinking of moving Kellogg's HQ from Battle Creek. I would imagine it's easier to recruit in Chicago than Battle Creek, MI.

They had recently opened a 50 person office in the Merch Mart last fall.