CHICAGO | Economic & Business Development

[Skyguy_7]

The Wall Street Journal is reporting that Amazon HQ2 is going to New York and Virginia. It will be split evenly between Long Island City in Queens and Crystal City in northern Va. Sad, but a wise decision to stay away from our shithole state.

There was mention, however, that Amazon is looking to build "major sites" in several other cities. So everybody gets a trophy.

[marothisu]

Funny. I was thinking for awhile "what if Amazon offered a few of the runner ups small but still significant offices or expansions." Maybe 500 or a thousand or two. Not as many as 25,000 or 50,000 but even a few thousand would be cool for any city. Less in the way of tax breaks too.

Kind of curious to see if this would happen to anybody.

[Busy Bee]

Originally Posted by Skyguy_7

Sad, but a wise decision to stay away from our shithole state.

Alright Bruce, because New York state is the poster child of fiscal health? Get real.

[BuildThemTaller]

Originally Posted by Skyguy_7

The Wall Street Journal is reporting that Amazon HQ2 is going to New York and Virginia. It will be split evenly between Long Island City in Queens and Crystal City in northern Va. Sad, but a wise decision to stay away from our shithole state.

There was mention, however, that Amazon is looking to build "major sites" in several other cities. So everybody gets a trophy.

Amazon has had offices in Chicago for a while. I have a friend that works for them in the Loop, in the CME building. They handle logistics, mostly. It would not be surprising to see a larger footprint in the city in the near future. Most companies are moving away from a central headquarters to a more distributed footprint. This HQ2 thing was always about extracting the maximum amount of tax giveaways to accomplish that feat. Chicago played the game, along with 19 other communities.

The thing that really determines growth for the city will be its entrepreneurial class. What kind of investment money is flowing into the city and how many startups can take advantage of that? They will employ far more than a single corporate relocation. That, and poaching corporate headquarters from the suburbs. Hey AllState, the kids want to work downtown!

[the urban politician]

I put my money on NY and Virginia not getting anywhere near 25,000 jobs each when all is up and running.

This will end up being a giant scam

[k1052]

Originally Posted by BuildThemTaller

Amazon has had offices in Chicago for a while. I have a friend that works for them in the Loop, in the CME building. They handle logistics, mostly. It would not be surprising to see a larger footprint in the city in the near future. Most companies are moving away from a central headquarters to a more distributed footprint. This HQ2 thing was always about extracting the maximum amount of tax giveaways to accomplish that feat. Chicago played the game, along with 19 other communities.

The thing that really determines growth for the city will be its entrepreneurial class. What kind of investment money is flowing into the city and how many startups can take advantage of that? They will employ far more than a single corporate relocation. That, and poaching corporate headquarters from the suburbs. Hey AllState, the kids want to work downtown!

WRT corporate relocations I think there is a case to be made for Chicago to not chase stuff like this and instead court legacy companies (banking, insurance, healthcare, retail, etc) who are still in the burbs or stuck in other cities with escalating cost and recruitment issues.

[tjp]

Hopefully we can get one of their ‘lil offices. Them making a second visit to Chicago bodes well to that, I hope.

Originally Posted by Busy Bee

Alright Bruce, because New York state is the poster child of fiscal health? Get real.

Well no - but Illinois is in a different league all-together. The state is rated BBB- by S&P, for God’s sake.

[marothisu]

Nashville is also getting an operations center for 5000 workers. This isn't a tech hub but rather to oversee distribution, supply chain management, etc. Still..great for them.

[Kenmore]

amazon news isn't unexpected but it's still GREAT to hear, major win for chicago

[ardecila]

^ I agree, the generous offers from cities/states were premised on them landing the whole enchilada. If Amazon comes back to Chicago with a smaller proposal, they shouldn’t get one dollar of incentives. If they really see value in spreading their operations among many cities in different regions of the US, then they need Chicago more than we need them...

Also this does not bode well for Lincoln Yards. With direct Red Line access, The 78 might be able to squeak by like Lakeshore East and Central Station did, by downscaling or eliminating the office component and creating a unique, compelling residential neighborhood where people will want to live. At Lincoln Yards, though, Amazon was the only force with a chance of holding back the NIMBYs. I think we’ll continue to see expansion of the CBD into Fulton Market but not necessarily to other new areas.

[k1052]

I'd suspect that Sterling Bay/JP Morgan has a plan B and plan C for Lincoln Yards.
The rest of the big developments feel more tentative.

I'm curious to see if the leasing logjam breaks now that Amazon has finally decided. Lots of big names looking for space.

[emathias]

Originally Posted by marothisu

...
One moment I remember at LGA was coming back home during Lollapalooza weekend Thursday evening. These girls were so excited that they got "group 2" boarding. Their reaction was priceless when they saw 3/4 of the plane board before. All business travelers.
...

I always get at least Group 2 on United because I hold their Visa, but it's become rather meaningless. I think it's odd they even bother to have more than three groups given how most of their flights actually get boarded. The only plus to always getting Group 2 is that it usually means that, even with all those business travelers going first, there's enough room for my carry-on.

[the urban politician]

Originally Posted by k1052

I'd suspect that Sterling Bay/JP Morgan has a plan B and plan C for Lincoln Yards.
The rest of the big developments feel more tentative.

I'm curious to see if the leasing logjam breaks now that Amazon has finally decided. Lots of big names looking for space.

Hmmm I don't know, I agree with emathias that "The 78" has the edge over Lincoln Yards right now, at least location-wise

[JK47]

Originally Posted by Skyguy_7

The Wall Street Journal is reporting that Amazon HQ2 is going to New York and Virginia. It will be split evenly between Long Island City in Queens and Crystal City in northern Va. Sad, but a wise decision to stay away from our shithole state.

There was mention, however, that Amazon is looking to build "major sites" in several other cities. So everybody gets a trophy.

The two largest offices for Amazon, outside of Seattle, are in the NYC and DC areas. They weren't going to choose Chicago...this was about extracting incentives for what is essentially an office expansion. It has nothing to do with taxes, regulations, bureaucracy, or whatever warped reason self-deprecating Illinoisans may dream up for why Chicago didn't get picked. There is no way in hell that Queens, of all places, is less corrupt, less regulated, and less complicated in terms of bureaucracy than Chicago.

As for shithole state...you must be confused since that's clearly Indiana (or Michigan which is resembles New York circa 1989). I'd say Ohio but that would be an insult to shitholes.

[k1052]

Originally Posted by the urban politician

Hmmm I don't know, I agree with emathias that "The 78" has the edge over Lincoln Yards right now, at least location-wise

Not if you don’t have a huge anchor. You could start knocking chunks of LY off for residential tomorrow and do great if the approvals were in hand. Though I think they are still courting Amazon alternatives...

[IrishIllini]

Originally Posted by the urban politician

Hmmm I don't know, I agree with emathias that "The 78" has the edge over Lincoln Yards right now, at least location-wise

Wasn't it ardecila that said the 78 had a better location? They're both two of my favorite posters, so I'm fine agreeing with either. I think Lincoln Yards and the north branch in general are well suited for robotics/AI labs and start-ups. I'm imagining a live-work district with showrooms for the public to check out emerging technology and buy stuff. That may slow or prevent the mega developments from taking hold. I don't see how these areas are attractive to major corporations without major infrastructure improvements. Even then it's hard to see how it competes with the 78 site. Interestingly enough, it's the same distance between Goose Island and Ogilvie as it is between the 78 and Ogilvie (1.4 mi). Union is a bit closer to the 78.

[Tom In Chicago]

Originally Posted by Kenmore

amazon news isn't unexpected but it's still GREAT to hear, major win for chicago

I think by "major win" you really mean dodged a bullet. . .

. . .

[ardecila]

Originally Posted by k1052

I'd suspect that Sterling Bay/JP Morgan has a plan B and plan C for Lincoln Yards.
The rest of the big developments feel more tentative.

I'm curious to see if the leasing logjam breaks now that Amazon has finally decided. Lots of big names looking for space.

I think Plan B and Plan C for these parcels was always going to be less intensive and more residential, I expect they will acquiesce in part to the aldermen's demands for more park space. Other components like the soccer stadium only made sense in the context of a massive infrastructure package, which in turn only made sense in the context of a huge anchor tenant. TBH the Finkl area and the big FFM site, given their relative lack of transit access, are better suited to low-rise multifamily and townhouse developments. We've seen almost no new supply of townhouses since the recession. Of course, that conflicts with the city's new zoning so expect that to be controversial.

Maybe the North Branch as a whole can continue to develop office at the south end where train stations are reasonably walkable. The "River District" on the Tribune site and the O'Donnell project just north of it can attract office, they are a reasonable walk from the Blue Line and can easily run shuttles around the congestion to Union/Ogilvie with only a minor new road connection through the Blommer Chocolate property.

On the other hand, the 78 has the best transit access out of the various megaprojects, with the Red Line tracks literally right on site. If the construction cost of a new station doesn't literally destroy the city's budget.

[marothisu]

Originally Posted by emathias

I always get at least Group 2 on United because I hold their Visa, but it's become rather meaningless. I think it's odd they even bother to have more than three groups given how most of their flights actually get boarded. The only plus to always getting Group 2 is that it usually means that, even with all those business travelers going first, there's enough room for my carry-on.

Yeah, it really depends on when you travel and between what cities but between/from a few it's pretty much pointless except for the overhead space. Monday morning, Thursday afternoon, etc from/to cities like Chicago, NYC, Boston, DC, Atlanta, Dallas, etc pretty much pointless - you aren't going to get on the plane fast unless you have higher status. I stopped traveling nearly 2 years ago now, but still have some status and literally the only reason I find it useful is for the overhead space issues. I have pre-check (get it if you don't have it) so as long as the airport has it and it's open (F*ck LGA on this - they close the line at like 7pm - so dumb and there's pretty much no such thing as priority line at the American terminal anyway), the priority security line doesn't even matter anymore.

[k1052]

Originally Posted by ardecila

I think Plan B and Plan C for these parcels was always going to be less intensive and more residential, I expect they will acquiesce in part to the aldermen's demands for more park space. Other components like the soccer stadium only made sense in the context of a massive infrastructure package, which in turn only made sense in the context of a huge anchor tenant. TBH the North Branch parcels, given their relative lack of transit access, are better suited to low-rise multifamily and townhouse developments. We've seen almost no new supply of townhouses since the recession.

Maybe the North Branch as a whole can continue to develop office at the south end where train stations are reasonably walkable. The "River District" on the Tribune site and the O'Donnell project just north of it can attract office, they are a reasonable walk from the Blue Line and can easily run shuttles around the congestion to Union/Ogilvie with only a minor new road connection through the Blommer Chocolate property.

On the other hand, the 78 has the best transit access out of the various megaprojects, with the Red Line tracks literally right on site. If the construction cost of a new station doesn't literally destroy the city's budget.

If somebody put a gun to my head I'd say plan B was a more traditional office user but one that takes up less sq ft. Rebalance with more residential on the LP side of the project. Plan C could be basically all residential but with significant gives to get approvals, mid-rise and townhomes pretty much for sure given the attitude of the neighbors. I only rate the odds at LY better than most given it's rather prime position straddling Bucktown and Lincoln Park with the 808 going to run right through the middle.

Absent a mega-tenant like Amazon (or someone of near caliber) I'd expect office development to largely proceed as it has in River North, West Loop, Loop, and Fulton Market. Which I've got no problem with since diverse steady growth is really healthier in the long run.