CHICAGO | Economic & Business Development

[chicubs111]

Originally Posted by marothisu

I watched his video. He gets some things right, and gets some things wrong IMO. Where Bezos will want to spend most of his time does not matter in my opinion as much as he thinks it does. He has a handful of residences all over the place and he's a smart guy, and a smart business man. He will pick the place that gets him what he wants and will allow him to grow whatever business he wants to grow in the way he needs to at whatever targets. Where he resides or wants to resides is secondary. He might love Miami and might love spending time there, but Miami might not be the best place for the actual business versus another place he might not like as much as far as personal life goes. He is not stupid enough to choose a place solely on that. If he does do this, then he's a stupider business person than we ever imagined.

As far as NYC goes, I understand that they will get younger workers to pile into apartments, but the issue with this is that eventually that type of mindset changes by the late 20s. You can get someone fresh out of college/a few years out of college to do this but just a handful of years later, it changes. I know that he states that they only care about younger talent, but that's really not true. Any corporation, tech or not, relies on a diverse work force to get successful - that includes age diversity. There's a lot of hot shot 22-24 year olds coming out of college, and while some are pretty damn good, the average person is not as good as they think. They're arrogant about their own abilities - I know because I was there once upon a time. The reality is that they don't know shit on average and rely heavily on people who are a little older (not 50 year old people, but people usually in their late 20s to late 30s and into their 40s sometimes). If you are dealing with enterprise level software development, there's a lot of intangibles that you just cannot teach. It comes with experience and more than just the technical stuff. When you're dealing with tens of millions of customers, you have to know how to manage things - it doesn't matter how talented of a programmer you are at that point. You have to know how to manage and also know what the right decisions are as well as the right path to decision making. I don't really expect anybody to know this who's never worked in that environment - including this professor. I manage a part of a piece of "software" which is used by tens of millions of people and is very important to each person's lives too. The actual delivery of this to tens of millions of people and the management of any serious issues is never, ever done by someone in their early 20s. They may be in on it, but they are never making any actual decisions. It's like that for a reason. I have some very talented people on my teams who are just a few years out of school, but they usually do not have the right insight into things like this - they will probably in a small handful of years, but not yet.

I wouldn't be shocked if they picked NYC but I would be half surprised. Ultimately the top cities that it'll come down to are NYC, DC, Philadephia, Boston, Chicago and probably Atlanta. Los Angeles, Dallas, and Toronto are maybes. I guarantee you those will be the top 6 to 9. Eventually it will come down to large metro areas that have a diverse economy which has a proven record of attracting top talent across the board whether it's experienced people or just out of college - and places with at least decent public transit and urbanity. Right now, the places I listed are exactly what they're looking for. Which one? It's hard to say - there's probably a lot of factors that are private to them. Air travel for example might come into play and that particular part might favor somewhere like Chicago or Dallas, but then there could be another criteria that does not.

I definitely don't believe its NYC..the whole cost of living and cost of doing business in NYC is totally what amazon is not looking for... Now i do believe from alot of the articles ive been reading that DC area looks like the favorite and mostly because of Bezos second home and it all comes down to where the wealthiest man in the world wants to spend his time..plain and simple...DC isnt' as pricey as NYC or Boston but is still close enough to draw from there talent pool and logistically a great location... I don't think though that DC has the development sites on par to what Chicago is offering..but that's just my opinion...there is no city that can compete with Chicago's multitude of sites close to downtown.. I also feel Chicago is just more attractive of a city for a younger person than DC.... I would just be kinda annoyed if Bezos has known all along that DC was gonna be the site he was going to pick regardless of all the efforts other cities have put in

[marothisu]

^ I don't think it'll be NYC for those reasons either. Personal COL - whatever, that really doesn't matter. The cost of doing business for that large of an operation is massive. Amazon is already putting a 2000 person office in Hudson Yards. The buildout is going to cost them $55M alone. Multiply that by 25 and you're up to nearly $1.4B if that's the average cost of buildout per person. This isn't counting the cost of construction for all the new buildings that need to be built. Not to say it can't be it, but it will work against NYC. On top of that, the business tax rate in NYC is not much lower than Chicago - both are in the middle of the 20 cities still in it. I think the only thing going for NYC is that they're offering a stupidly large incentive of something like $8B to $9B. I know some life long New Yorkers here who hope that Amazon doesn't come to NYC and one reason is because of the stupidly large incentive. The other is because they know that even higher prices will probably come.

I also disagree about it being where he wants to spend the most time. This would be stupid business-wise. Obviously he'll have to like the place enough, but I'm guessing that already factored into the top 20, for most at least. Again, he's not going to choose Miami for the fact that he likes being near a large body of water/beach and whatever. He's going to pick a place that will get him the best or one of the best returns on the BILLIONS in investment.

You and others would have a point if it was just some executive c-suite office, but no. This isn't the fact for something that's supposed to be 50,000 employees. Thinking that way is extremely short sighted.

[Via Chicago]

Originally Posted by urbanpln

(1) The access to top notch talent. He said in the eyes of Amazon the best talent is a 24 year old EE grad from MIT. He goes on to explain that top talent isn't concern about cost of living, and that cost of living only matters when you are in your 30's and begin accumulating things, (i.e. homes, kids, and dogs). He said that Amazon doesn't really care about middle managers (older workers), and they know younger talent will pile into five bedroom apartments in Brooklyn (Gowanus) and D.C. (Adams Morgan).

(2) His second and strongest prediction is that what matters most is where does a 53 year old billionaire (Bezos) want to spend most of his time. He said that Mr. Bezos already have homes in D.C. and NYC.

I hoping he's wrong, but this guy has a winning record in making predictions about business, especially in the Tech world. I hope he's wrong, but his logic makes since to me. Check out his quick analysis on Youtube ("Amazon HQ2:The Winner Is....")

If Chicago does not land Amazon, I hope it causes the politicians and citizens in this region to wake up. Chicago is too much of a jewel to not be managed right.

even assuming that were true, how could you blame chicago's "management"? yes, the secret it out....MIT is not located in Chicago. i suppose if its a stringent requirement to be located next to MIT, Chicago will not be your choice. and secondly, bezo's housing preferences have little if nothing to do with any of this, and even if they somehow did, that is indicative of Chicago's "mismanagement" how? that whole angle is being blown way out of proportion, and this also isnt some unilateral decision. there is a board of directors, auditing committees, etc for a reason.

if it dosent go to NY does that mean NY is managed poorly? you guys need to get out of your own parochial bubbles and realize that its a big world out there and not every crown jewel is going to always drop out of the sky and land in your lap. that isnt somehow an indictment on the overall health of the city. but at this stage of the game, everyone is guessing and doing so without any sort of inside information.

[the urban politician]

^ I think Chicago's "management" isn't helping the situation in what is supposedly a very competitive situation. When Chicago loses, I wouldn't say that is the sole factor to blame, but it certainly doesn't help.

[Justin_Chicago]

FourKites raises $35 million as trucking turns to Big Data

FourKites, a fast-growing software provider to companies that ship goods by truck, has raised another $35 million.

It's a big haul for the company, which raised $13 million from Bain Capital Ventures in 2016. FourKites is riding a wave of customer growth, as well as an acceleration from trucking customers demanding real-time information about shipping. Part of that comes from an increase in two-day and same-day delivery from e-commerce companies such as Amazon. But another catalyst is a new federal law that requires U.S. truck drivers to use electronic devices to log how much time they're spending behind the wheel. FourKites integrated its software into such devices.

Article: http://www.chicagobusiness.com/artic...n-in-fourkites

[urbanpln]

Originally Posted by the urban politician

^ I think Chicago's "management" isn't helping the situation in what is supposedly a very competitive situation. When Chicago loses, I wouldn't say that is the sole factor to blame, but it certainly doesn't help.

I didn't use the best words, but I meant the political powers in this state, region, and city. Politicians who do not operate in the best interest of the progress of this city or region(socially and economically). This is aimed at all of the crooks (democrats and republicans) that operate like it's still the good old days. Shaking down developers and flexing their power for god knows what.

[marothisu]

Every single city/metro area has positive and negative aspects - every metro area has its issues. Honestly, I hate the attitude that many in Chicago think that Chicago is the only place that has problems - as if places like LA and NYC don't have their own. Sure, some maybe be more serious than others, but the general attitude is very naive and ignorant. There's no such thing as a perfect location - including one for somebody trying to spend billions of dollars to have a 50,000 person office complex. I certainly don't know which of the things Amazon or any other company thinks are absolute bad deal breakers and frankly nobody else here does either. Yeah, I think the state's financial situation is a negative, but I also don't think Chicago would have made the top 20 if it was a massive deal breaker. It wasn't just other metro areas that are down that got denied the top 20 such as Detroit and Baltimore, it was also very economically viable areas like Houston, Minneapolis, and San Diego who didn't get it either. At the end of the day, sure it might end up being a deal against some of the other top places, but the fact that Chicago is still in this thing shows that it's not as big of a deal as many believe. I honestly don't think Chicago would have made top 20 cut if they thought it was a massive dealbreaker.

[the urban politician]

https://www.businesswire.com/news/ho...o-Headquarters

[bnk]

New Chicago Amazon website

http://www.chicagoisallin.com/

[bnk]

https://www.chicagobusiness.com/real...in-post-office


February 22, 2018

Post Office developer picks up another site nearby

601W bought a 4.5-acre site west of the Old Main Post Office at 717-727 S. Desplaines St.

The developer overhauling the Old Main Post Office has added another property three blocks west of the massive office project, expanding its portfolio in an area it hopes will turn into a major corporate destination.
A venture of New York-based 601W paid $34 million this month to acquire the 4.5-acre site at 717-727 S. Desplaines St. from St. Louis-based data center developer Ascent, Cook County property records show.
The deal comes almost five years after Ascent bought the land and the vacant former Grainger warehouse on the site for $27 million, with a vision to turn it into a data center.
But that plan never materialized. Instead, Ascent has sold it to a developer that has been adding to its land bank near the hulking post office building as it prepares to open its doors later this year.

Assembling property surrounding the 2.8-million-square-foot post office gives 601W more control over its surroundings to both develop ancillary properties and prevent other land owners from putting up buildings it doesn't want nearby. The value of the land surrounding the post office could also appreciate if 601W delivers on its vision for the building.
The development site could also be marketed as a complementary piece for prospective post office tenants, ...

[marothisu]

Originally Posted by bnk

New Chicago Amazon website

http://www.chicagoisallin.com/

LOL.....interesting..

Originally Posted by bnk

https://www.chicagobusiness.com/real...in-post-office


February 22, 2018

Post Office developer picks up another site nearby

601W bought a 4.5-acre site west of the Old Main Post Office at 717-727 S. Desplaines St.

The developer overhauling the Old Main Post Office has added another property three blocks west of the massive office project, expanding its portfolio in an area it hopes will turn into a major corporate destination.
A venture of New York-based 601W paid $34 million this month to acquire the 4.5-acre site at 717-727 S. Desplaines St. from St. Louis-based data center developer Ascent, Cook County property records show.
The deal comes almost five years after Ascent bought the land and the vacant former Grainger warehouse on the site for $27 million, with a vision to turn it into a data center.
But that plan never materialized. Instead, Ascent has sold it to a developer that has been adding to its land bank near the hulking post office building as it prepares to open its doors later this year.

Assembling property surrounding the 2.8-million-square-foot post office gives 601W more control over its surroundings to both develop ancillary properties and prevent other land owners from putting up buildings it doesn't want nearby. The value of the land surrounding the post office could also appreciate if 601W delivers on its vision for the building.
The development site could also be marketed as a complementary piece for prospective post office tenants, ...

Good. That area is so weird. It would be awesome to see it developed into something a little more than what it is right now.

[Vlajos]

A Silicon Valley software company is setting up shop in Chicago, drawn to the region's tech talent, not sales.

ServiceNow, which makes software that businesses use to automate tasks such as IT administration, plans over the next two years to hire 150 engineers, developers, designers and other tech workers to build products here.

http://www.chicagobusiness.com/artic...neering-center

[the urban politician]

Originally Posted by Vlajos

A Silicon Valley software company is setting up shop in Chicago, drawn to the region's tech talent, not sales.

ServiceNow, which makes software that businesses use to automate tasks such as IT administration, plans over the next two years to hire 150 engineers, developers, designers and other tech workers to build products here.

http://www.chicagobusiness.com/artic...neering-center

I predict a lot of companies will do this, realizing that it’s really not worth it to pay a premium for all that fancy MIT talent for more than just a handful of people working on the most cutting edge projects.

And besides, UIUC is also one of the top engineering schools in the nation although I’ve heard its rankings have slipped a bit.

[Tom In Chicago]

Moved all off topic discussion to the politics, current events and everything else thread. . .

. . .

[marothisu]

Originally Posted by the urban politician

I predict a lot of companies will do this, realizing that it’s really not worth it to pay a premium for all that fancy MIT talent for more than just a handful of people working on the most cutting edge projects.

And besides, UIUC is also one of the top engineering schools in the nation although I’ve heard its rankings have slipped a bit.

I don't know why all my posts in response to this were moved to the Off Topic/Everything else thread, and this wasn't but I just want to say it again lightly: The thought that Silicon Valley is somehow full of MIT talent is very, very, very far from the truth.

[the urban politician]

I just thought of a new branding commercial for tourism to Chicago. Something a bit tacky, which is kind of the point:

Start with the word “Chicago”, then cut out ‘cago’ and have a beautiful woman with a foreign accent say “You had me at Chi”

Show images of Chicago, then once again end it with the above, but this time with a different beautiful woman saying it.

I love this idea!

[the urban politician]

Interesting article about the Life Sciences boom in the Chicago area:

https://www.bisnow.com/chicago/news/...ew-space-85652

[the urban politician]

Aspen Dental Management moving HQ to West Loop from E. Syracuse, NY:

http://www.chicagobusiness.com/artic...agos-west-loop

[Vlajos]

Originally Posted by the urban politician

Aspen Dental Management moving HQ to West Loop from E. Syracuse, NY:

http://www.chicagobusiness.com/artic...agos-west-loop

Great!

[the urban politician]

https://www.businesswire.com/news/ho...Chicago-Global