CHICAGO | Economic & Business Development

[the urban politician]

Big time but more jobs for downstate.

Now, can I find out what cattle and pigs will be eating this so I can avoid their meat products?

https://www.chicagobusiness.com/manu...oming-illinois

[SIGSEGV]

That's probably about the best you can hope for Decatur.

[the urban politician]

Originally Posted by SIGSEGV

That's probably about the best you can hope for Decatur.

Yeah, but it’s not the best you can hope for my palate

I mean seriously, I know it’s just psychological, but do I really need to know that my hamburger came from a cow that was fed dead bugs?

[the urban politician]

What ever happened to the vomit smiley?

[SIGSEGV]

While Decatur gets insect goo, it looks like Bloomington is getting chocolate:

https://www.chicagotribune.com/busin...5~5~5~art%20no

[sixo1]

Orphazyme, a Danish pharmaceutical company working on treatments for neurodegenerative rare diseases, is establishing a U.S. headquarters in Chicago. The company said it will hire 30 people to prepare for Orphazyme's first commercial product launch in 2021.

Source.

[galleyfox]

Crain’s
Discover eyes up to 1,000 jobs for South Side call center

“The Riverwoods-based credit card giant is in late-stage discussions to lease well over 100,000 square feet in the former Target store in Chatham.”

Not quite confirmed and over the hurdle yet, but Discover Fin. discussing plans for major call center at DL3 Realty’s 8560 S Cottage Grove. Also brings to mind earlier rumors of Discover eyeing the 78.

[Halsted & Villagio]

Originally Posted by galleyfox

Crain’s
Discover eyes up to 1,000 jobs for South Side call center

“The Riverwoods-based credit card giant is in late-stage discussions to lease well over 100,000 square feet in the former Target store in Chatham.”

Not quite confirmed and over the hurdle yet, but Discover Fin. discussing plans for major call center at DL3 Realty’s 8560 S Cottage Grove. Also brings to mind earlier rumors of Discover eyeing the 78.

This is major. Fingers crossed it happens. This is the kind of thing that gives communities hope which, in turn, lowers crime. This is exactly the kind of investment that has been lacking on the Southside of Chicago -- particularly during the Rahm and Daley years.

For Chicago to become the nation's best city (which I firmly believe it can be) and for it to start massively growing again (both economically and with new residents), it must be viewed as a "safe city" and not a city divided between the "haves" and "have nots", the safe area versus the area where people go to literally die. Those are scary thoughts/concepts for citizens and businesses to grapple with. Instead of taking on those challenges, many just assume pass or move elsewhere. We have to stop that.

Lastly, case in point -- New York. There was a time when it was viewed in many ways like Chicago is viewed today. Harlem/The Bronx/Brooklyn, etc. - all viewed as dangerous, run down and gang infested -- thus hurting perceptions around the world which stagnated/curbed growth. To their credit they did the necessary heavy lifting and cleaned up and invested in those once neglected areas, which made pre-pandemic NY one of the safest major cities in the United States -- thus spurring growth in all sectors. We can, and must, do the same.

Discover investing in the Southside is a huge step in that direction. Lets all hope it happens

[ardecila]

This is becoming quite common in other cities, where old big boxes become essentially Class B/C office space with some modest renovations. The excessive parking of a big box store is usually perfect for an office user.

I'm glad to see this is happening just 2 years after Target's closure, it definitely helps soften the blow to the community. And the 1000 jobs in the call center aren't necessarily better paying than Target's jobs, but they don't necessarily require able-bodied individuals which is a plus.

[LouisVanDerWright]

^^^ Target also doesn't provide 1000 jobs at a single location. This is way better for the community than another corporate big box extracting wealth from the neighborhood and sending it to China and rich shareholders.

[LouisVanDerWright]

https://www.chicagobusiness.com/resi...gest-us-metros

Can someone paste a summary of this here?

[galleyfox]

Originally Posted by LouisVanDerWright

https://www.chicagobusiness.com/resi...gest-us-metros

Can someone paste a summary of this here?

Basically from Zillow reports, it shows Chicago home prices rose 14.8% yoy which is a full percent above 2nd place Phoenix among the 10 largest metros.

Brokers suspect that Chicago has been so undervalued that it’s now undergoing a sudden reset.

Condo prices remain stagnant.

https://www.zillow.com/research/zill...-report-27151/

[the urban politician]

^ Could be. It’s been practically a lifetime since the region’s SFH market has been anything but at a complete standstill.

People who bought homes in the 90’s have for years sold them at a loss. A shroud of uncertainty has continued to keep our local prices down.

Rising home prices may, however, be a boost to landlords who have otherwise had a tough year. Hopefully with the vaccine the return to downtown will be in full force.

[marothisu]

Originally Posted by the urban politician

^ Could be. It’s been practically a lifetime since the region’s SFH market has been anything but at a complete standstill.

People who bought homes in the 90’s have for years sold them at a loss. A shroud of uncertainty has continued to keep our local prices down.

Rising home prices may, however, be a boost to landlords who have otherwise had a tough year. Hopefully with the vaccine the return to downtown will be in full force.

Crains has been publishing articles for the last few months about the prices. A few months ago I'd taken a look and there were a bunch in the city, mainly SFH near Midway, and some closer to O'Hare in areas like Portage Park, Jefferson Park, etc where the sale price went above the list price. I had a map going but it was only for 1 month. There were at least 150 of them just for when I looked (October, iirc).

The Zillow site has interactive data on it. Here is the data for October 24 from the Zillow link for YOY median sale price

Memphis MSA: +25.8%
Kansas City MSA: +18%
Columbus, OH MSA: +17%
San Jose MSA: +16.6%
Boston MSA: +15%
Chicago MSA: +15%
Detroit MSA: +14.2%
Phoenix MSA: +14.1%
Riverside, CA MSA: +14%
Charlotte MSA: +13.9%
Austin MSA: +13.8%
Tampa MSA: +13.5%
Minneapolis MSA: +13.4%
Miami MSA: +13.2%
Indianapolis MSA: +13%
Los Angeles MSA: +13%
Atlanta MSA: +12.9%
San Francisco MSA: +12.2%
Nashville MSA: +12%
Oklahoma City MSA: +12%
Dallas MSA: +11.9%
San Diego MSA: +11.8%
Portland MSA: +11.7%
Houston MSA: +11.3%
Seattle MSA: +11.3%
San Antonio MSA: +11%
Louisville MSA: +10.8%
Pittsburgh MSA: +10.6%
Washington DC MSA: +10.6%
Denver MSA: +10.3%
Milwaukee MSA: +10.3%
New York City MSA: +10.1%
Philadelphia MSA: +9.5%
Cleveland MSA: +9.3%
St. Louis MSA: +8.7%
New Orleans MSA: +8.2%
Orlando MSA: +7.8%
Jacksonville MSA: +6.8%
Baltimore MSA: +4.9%
Honolulu MSA: +4.6%
Las Vegas MSA: +4.3%

[the urban politician]

I’m sure that the usual echo chamber will scoff and laugh at this, but worthy of acknowledgement:

Elon Musk’s warning for Illinois

https://www.chicagotribune.com/opini...zqu-story.html

[sentinel]

Originally Posted by the urban politician

I’m sure that the usual echo chamber will scoff and laugh at this, but worthy of acknowledgement:

Elon Musk’s warning for Illinois

https://www.chicagotribune.com/opini...zqu-story.html

Interesting, but then I remember a number of things:

- The Tribune editorial board is anything but impartial, so as soon as I see anything from them, it raises a red flag in my mind

- Texas may not have state income taxes, but federal income taxes still apply

- Texas has to offset that revenue loss some how, so Texans pay higher sales and property taxes than most other states.

- Texas also receives additional tax revenue from oill and natural gas production, essentially like a smaller version of Saudi Arabia, which helps offset need for income taxes. Illinois doesn't have that luxury.

- If you live along the gulf coast like 9-10 million Texans do, chances are you'll also have to pay higher home insurance rates, as well as hurricane insurance. Houston metro and Galveston have been hit with at least three 100 or 500 year storms/flooding just within the past 5 years, and thanks to no zoning laws, so there's a good chance that new 4,000 sq ft house you bought for $250,000 is built in a floodplain and will be partially inundated within another 5 years time. 150,000 homes were damaged due to flooding from Hurricane Harvey in 2017.

- Texans also pay higher general goods sales taxes and higher vehicle taxes

- Texas ranks 39th out of all 50 states + DC in total education spending per student, which is shocking (but perhaps not surprising the highly conservative political landscape there), considering it's one of the wealthiest states in the union.

- Texas is also a net positive state with regards to federal funding distribution, meaning they take more money than they contribute; Illinois is the opposite, because it's bled dry to make states like Texas thrive because the average household income is higher in Illinois than in Texas. Texas is a 'getter' state, essentially getting handouts from other, 'giver' states.

- Texas is triple the size of Illinois, with the added benefit of 4 large metropolitan/urbanized areas that helps balance out their lack of state income taxes. Illinois has one. I've said it before, but Illinois' biggest problem is too many small government entities, as well as a stupidly written state constitutional amendment regarding pension liabilities.

Of course only one side of the story will be told by a parochial paper like the Tribune.

[the urban politician]

^ So go ahead and tell me about the “impartial” editorial boards that you like to read.

(Hint hint: they’re always the one that sees the world the way that “I do”)

Just saying. It’s Chicago’s hometown flagship newspaper for like 150 years. They are deeply, deeply, deeply immersed in every single way in everything that is, has been, and ever will be Chicago. Period.

To blow them off as “impartial” is preposterous. You don’t have to agree with everything they say, but their view on any local affair should be taken as one with unparalleled authority.

[twister244]

Originally Posted by the urban politician

^ So go ahead and tell me about the “impartial” editorial boards that you like to read.

(Hint hint: they’re always the one that sees the world the way that “I do”)

Just saying. It’s Chicago’s hometown flagship newspaper for like 150 years. They are deeply, deeply, deeply immersed in every single way in everything that is, has been, and ever will be Chicago. Period.

To blow them off as “impartial” is preposterous. You don’t have to agree with everything they say, but their view on any local affair should be taken as one with unparalleled authority.

I definitely think there's something interesting when it comes to the real estate trends in Chicago. I'm not surprised to see some uptick. It's simply become such a bargain compared to other major metro areas. I've posted this before, but here in Denver, the average price for a SFH within the city limits is now >$600k. Granted we have lower property taxes, but at some point, $600k is still $600k and out of reach for many folks. When you pencil out numbers (interest rates, local taxes, etc), the scales have slowly been tipping towards Chicago becoming more of a bargain with time.

Every person may view it differently, but if you are looking for a nice chunk of space you can buy where you have access to one of the nicest urban fabrics outside of NYC in the US, Chicago is cheap right now. Even with the higher property taxes, I am constantly amazed at how cheap you guys are now.

If these trends in other "hot" metros continue, eventually, some people may start choosing Chicago again over Denver/Austin/etc.

But.... with all of that said, there is still a looming question of handling the local city/state budget situation and getting a final fix in for the pension situation.

EDIT - Here's a good comparison showing what I meant. First link is for a townhome that is completing construction right now behind me here in Denver. Second listing is a fairly new construction unit literally a block away from Wrigley Field...... While the place near Wrigley is still higher due to taxes, it's only a few hundred in difference for the monthly payments. I've been watching this gap slowly erode away over the last few years, so don't be surprised when younger people start taking a second look at Chicago, or moving away from it.

Denver listing:
https://www.redfin.com/CO/Denver/282...home/173956270

Wrigleyville Listing:
https://www.redfin.com/IL/Chicago/37...home/173568926

[sentinel]

Originally Posted by the urban politician

^ So go ahead and tell me about the “impartial” editorial boards that you like to read.

(Hint hint: they’re always the one that sees the world the way that “I do”)

Just saying. It’s Chicago’s hometown flagship newspaper for like 150 years. They are deeply, deeply, deeply immersed in every single way in everything that is, has been, and ever will be Chicago. Period.

To blow them off as “impartial” is preposterous. You don’t have to agree with everything they say, but their view on any local affair should be taken as one with unparalleled authority.

The fact that you focused on my calling out the Tribune as 'impartial' compared to what I actually described speaks volumes. Thank you.

[the urban politician]

^ Neat perspective.

I’m not sold on home ownership in Chicago, but hey, maybe there is something there.

For me, the sweet spot is to buy a decent but not huge home in the burbs, use their schools, and visit the city often.

Many people on this forum detest that idea for reasons that I understand, but I find that to still be the best value proposition and millions of normal people agree with me.

Now, Covid clearly changed that. There is pretty much zero reason to go to Chicago and nobody in power right now has even cared to realize how economically disastrous that is. I’m not surprised, of course, as since Rahm Emanuel left office this region has utterly lacked a champion who is willing to fight diligently for the local economy. We have a bunch of half-asleep laggards at the wheel right now and it’s very disconcerting.