CHICAGO | Economic & Business Development

[moorhosj1]

Originally Posted by VKChaz

These comments are beside the point I was making that much of the potential of tech is in the tax revenue.

I was making a point about the potential second-order effects of that strategy. The Governor in charge of that gigantic surplus might get re-called.

[Halsted & Villagio]

This is where Lightfoot pleasantly surprises me. When she was first elected it was generally perceived that she would be good for addressing long neglected neighborhood issues within the city, but what many did not know (myself included) is that she would be good for the overall economy and growth of downtown. She has been literally rolling her sleeves up and digging in to help grow and develop downtown. Its great to see........

Originally posted by Randomguy34:

https://www.chicagobusiness.com/greg...aling-downtown

Lightfoot reveals vision for healing downtown
Quote:
The city's plan calls for closing parts of major streets for entertainment, filling vacant storefronts and boosting big developments, all to help the city spark a post-COVID rebound.

The Lightfoot administration is proposing to close portions of three of the city’s major thoroughfares on occasion this summer—North Michigan Avenue, State Street and LaSalle Street—as part of a newly detailed plan to help downtown bounce back from the pandemic.

The city is also pledging to help developers of large projects such as the 78 and the former Michael Reese hospital site lure anchor tenants; backing plans for pop-up stores and other creative ways to temporarily fill vacant retail storefronts; and pondering a new way to let business groups establish and promote themselves by leveling a tax on their members. Read a report on the plan below.
....
Mayekar said Lightfoot personally has been meeting with developers, real estate investors and others in hopes of jump-starting large developments, including the Lincoln Yards project. A recent boom in development of biomedical lab space there and more prominently in the Fulton Market area is partially the result of such sessions, and more may be on the way, he said.

[the urban politician]

It’s definitely great to see.

Truth is, no matter who is in office and what is happening in the world, it’s a plain fact that the City and region’s economy and well being depends on a healthy and vibrant downtown.

[marothisu]

Glen Tullman's health care startup Transcarent raises another $58M

https://www.chicagobusiness.com/john...es-another-58m

Transcarent, a new health startup led by Chicago serial entrepreneur and investor Glen Tullman, has raised another $58 million.

..

Transcarent picks up where Tullman’s most recent company, Livongo, left off: It’s essentially a digital health care concierge service for self-insured companies, helping their employees get the most bang for their health care dollars. Transcarent’s app can help employees connect with a doctor via text message, schedule an in-person appointment, request a prescription, find in-home treatment options or even figure out the hospitals that have highest success rates for a particular type of care.

..

Transcarent, which previously raised $40 million, has 135 employees, with offices in Chicago, San Francisco and Denver. “I suspect we’ll do a lot of our hiring in Chicago and Denver. It’s hard to get people and keep people in California,” Tullman said.

[jboy560]

More investment incoming! $110m being invested in Chicago-based cannabis company, PharmaCann.

https://www.chicagobusiness.com/mari...n-weed-company

[Randomguy34]

It's Going To Be A Good Summer For Downtown Multifamily Landlords As A Full Recovery Comes Into View

The downtown apartment market came roaring back this spring, and the rush of new renters to developer Michael Moceri’s downtown apartment building put his firm in an unexpected position. Instead of spending this year scrambling to stabilize its new Parkline Chicago tower, the building at 60 East Randolph St. in the Loop began filling up so fast that Moceri + Roszak sought to slow down the pace of new leases. “Something happened, the switch was turned on, and everything went crazy,” he said. “We had no idea we would be leasing as well as we have, but the market is crushing it.”

Moceri + Roszak started offering the Parkline’s 190 apartments earlier this year, and as anticipated, the first couple of months were slow. But a springtime flood of renters came through the doors, and instead of worrying about how it will fill the building, the company now wants to avoid having too many leases expire at the same time next year.
....
The downtown market had already recorded a strong Q1 this year. Tenants leased 2,667 apartments, the most ever for a single quarter, according to a report in Crain’s Chicago Business, citing data from consulting firm Integra Realty Resources. That pushed occupancy up from 86% in Q3 2020 to more than 91% in Q1. Downtown Apartment Co., a rental agency that works with more than 200 buildings, saw its move-ins spike in Q1, with an 85% increase in March and a 50% increase overall, according to Managing Broker Ben Creamer. Move-ins were 77% higher in Q1 2021 than in the same period in 2019.
....
The first move-ins at Parkline occurred in March, and as of this week, 148 leases were signed, or nearly 78% of the apartments. Moceri now expects to stabilize the building by July and to position it so most leases expire between April and September of 2022.
....
And the demand is coming from a wide range of renters, Director of Leasing Ericka Rios added. That includes people relocating from other cities for work, students moving back downtown in preparation for the fall, office workers who want to stay at home but prefer a larger space and a lot of traffic from medical professionals that work in hospitals in or near downtown.

Lendlease recently topped off Cascade, a 37-story, 503-unit rental tower at 455 East Waterside Drive in its Lakeshore East neighborhood. It was 13% pre-leased, Weldon said, and Lendlease also saw a spring rush for the building, signing about 70 leases in six weeks. And Lendlease had about 80 applicants in May for Porte, a two-tower, mixed-use development at 855 West Madison St. in Chicago’s West Loop, developed with partners The John Buck Co. and Intercontinental Real Estate Corp. and opened during the pandemic. It’s now about 70% leased.

https://www.bisnow.com/chicago/news/...to-view-109189

[sentinel]

(*Apologies if some of these have already been posted)

Mayor Lightfoot Announces the Return of the Chicago Venture Summit, M25 Summit, and Midwest.Tech/Connect this September 2021

"Mayor Lightfoot announces the return of the Chicago Venture Summit, M25 Summit, and Midwest.Tech/Connect this September 2021

Postponed from 2020 due to the pandemic, Chicago’s flagship VC conference returns this September with other Midwest regional events as city fully reopens

CHICAGO – Mayor Lori E. Lightfoot announced today the return of three premier venture events in 2021: the Chicago Venture Summit this September 28-29, the annual M25 Summit this September 30-October 1, and Midwest.Tech/Connect this September 13-14.

“Given our city’s recent reopening, as well as the ever-growing number of investors choosing to support our city and our entrepreneurs, 2021 will truly be the best year for Chicago’s thriving startup and VC ecosystem,” said Mayor Lightfoot. “From new tech unicorns to record-breaking VC funding totals in the first six months of the year, it’s clear that Chicago is poised for levels of success unlike anything we have ever seen before in our tech industry in this year alone. I am thrilled to welcome investors to our city this fall to find their next big deal with our local entrepreneurs and innovative startups.

In 2020, Chicago startups raised a record breaking $2.8 billion in venture capital funding – an all time high. In the first four months of 2021 alone, Chicago startups raised more than $3 billion in VC funding with new local tech unicorns ($1+ billion valuation) which include ActiveCampaign, Amount, Cameo, Enfusion, and project44. Chicago also leads the nation with the best tech investor ROI according to Pitchbook data."

http://www.worldbusinesschicago.com/...eptember-2021/

___________________________________________________________________________________________

Today @fDiIntelligence
reported that #Chicago moved up into the #5 spot as a "city of the future 2021/2022." Chicago moved into fifth place this year due to record FDI levels in 2019 & 2020. Read more:

https://www.fdiintelligence.com/article/79912

https://twitter.com/WorldBizChicago/...13400009080833

________________________________________________________________________________________________

Mayor Lightfoot announces ThinkChicago Exchange 2021

"Mayor Lightfoot announces ThinkChicago Advanced Degree Exchange 2021 led by World Business Chicago and P33, with the University of Illinois System, Discovery Partners Institute, and GET Cities

ThinkChicago’s first exclusive event for grad students and PhD talent connects top-tier talent with rapidly-growing Chicago companies & startups

Mayor Lori E. Lightfoot joined World Business Chicago and P33 to announce the launch of ThinkChicago Advanced Degree Exchange 2021, the first-ever flagship event exclusive for graduate students and PhD talent. This three-day, virtual event from June 8-10 will provide a behind-the-scenes tour of Chicago’s thriving tech & innovation sector for nearly 200 top-tier university students and professionals. Selected participants will gain access to a series of keynote speakers, panels, and networking sessions with local companies and startups.

“From new tech unicorns like ActiveCampaign and Amount to record-breaking VC funding in the first five months of 2021, Chicago’s startup and innovation ecosystem has seen incredible momentum,” said Mayor Lightfoot. “With many fast-growing, local companies in need of top-tier talent, our ThinkChicago efforts have never been more critical, allowing us to continue accelerating our post-pandemic recovery and expand job opportunities for our students.”"

http://www.worldbusinesschicago.com/...exchange-2021/

___________________________________________________________________________________________________

CHICAGO #1 CITY IN NORTH AMERICA FOR FOREIGN DIRECT INVESTMENT

"New Report Shows Chicago #1 for 8th Consecutive Year

CHICAGO–World Business Chicago today announced that, for the eighth year in a row, Chicago leads the U.S. in foreign direct investment (FDI) according to the 2020 IBM Global Location Trends report. The annual report, which outlines the latest trends in corporate location selection, named Chicago the top North American metro in foreign direct investment projects.

“Chicago is a leader in the global economy,” said Michael Fassnacht, CEO & President, World Business Chicago. “This ranking demonstrates what we hear from companies around the world — they see Chicago as the city where their business is best set up for success and growth, where they can create jobs and economic opportunities across the city. Our work creating and sustaining economic partnerships around the world and growing our international network ensures that Chicago will continue to lead on the global stage for many years to come.”

Chicago ranks first in North America in foreign direct investment for the eighth year running in terms of the total number of FDI projects.
Chicago ranks #6 in foreign direct investment globally.

“Last year Netherlands-based company Newcold chose Chicago for its North American headquarters,” said Jonas Swarttouw, VP Customer & Business Development, Newcold North America. “Chicago is a great city because of its access to a robust pipeline of diverse talent, central location, and business infrastructure. In our short time in the city, we’ve discovered that the growth opportunities are so vast and plentiful, we expect to exceed current plans for our local footprint.”

A hub of international business activity, Chicago is home to more than 1,800 foreign-based companies, accounting for more than $140 billion in foreign direct investment. World Business Chicago continuously works to increase foreign direct investment with initiatives including the Gateway Cities Agreement with the Chinese Ministry of Commerce, Global Cities Economic Partnership with Mexico City, Chicago-London City Data Alliance, and Tel Aviv-Yafo –Chicago Partnership. These efforts serve as a model to enhance economic ties with other countries and global cities to facilitate trade and foreign direct investment.

The IBM Global Location Trends report shows where companies are locating, expanding, and creating jobs around the world. Projects must meet IBM criteria, including having created more than ten jobs, to qualify. For more information, visit IBM Global Location Trends."

http://www.worldbusinesschicago.com/...ct-investment/

[marothisu]

Another unicorn for Chicago's tech ecosystem and potential future IPO

With this $157 million funding round, another Chicago company is valued at $1 billion-plus

https://www.chicagobusiness.com/john...1-billion-plus

G2, a software-marketing technology company, has raised $157 million, pushing its valuation to $1.1 billion.

The company, founded in 2012 by software entrepreneur Godard Abel, has raised $257 million altogether and has more than 400 employees. It’s the latest in a string of fast-growing Chicago tech companies to reach “unicorn” status, or valuations of more than $1 billion, amid a sharp rise in nine-figure financings.

G2 provides free crowd-sourced reviews on business software to technology buyers. It sells subscriptions to software makers that allow them to add customized content to their profiles and obtain data about companies that have looked at G2’s information on their software.

The company cut staff before the COVID-19 pandemic, but it caught a tailwind as software makers, like other businesses, found themselves selling remotely. G2 increased its customer base 50 percent to more than 2,000 companies. Customers include Salesforce, HubSpot, Zoom, Autodesk, Oracle, SAP and Amazon Web Services.

..

Abel says G2 will use the new funding to invest in the product, particularly adding more artificial intelligence to improve its recommendation engine. The company has amassed more than 1 million reviews across more than 2,000 categories of software. Abel plans to hire more data scientists and engineers and add to G2’s research team.

..

Abel, who previously sold software companies SteelBrick to Salesforce for $360 million and BigMachines to Oracle for more than $400 million, says he plans to take G2 public, though he didn’t offer a timeline.

[/quote]

[Randomguy34]

Not directly Chicago related, but Indiana is quickly becoming a boom state for large-scale solar power installations. Q1 alone expects half a gigawatt of new installations, and the state is forecasted to install another 4 GW over the next five years. How likely is it that we could expect a similar flood of investments in Illinois? The current energy bill stalemate probably isn't helping.

https://pv-magazine-usa.com/2021/06/...ed-in-indiana/

[the urban politician]

This is starting to sound like a broken record...in a good way

Freight tech company opening office in Fulton Market, adding 100-150 employees:

https://www.chicagobusiness.com/john...-fulton-market

[marothisu]

Originally Posted by the urban politician

This is starting to sound like a broken record...in a good way

Freight tech company opening office in Fulton Market, adding 100-150 employees:

https://www.chicagobusiness.com/john...-fulton-market

Cool. Queue up another midrise. There was another farm tech company from the Bay Area looking to open a Fulton Market office too. I forgot to post that but I think it was small news last week. I believe they are a marketplace like Amazon, but for farmers to purchase supplies online for the farm.

[Randomguy34]

Great to hear the freight tech and farm tech news, here's some fintech news with regards to cryptocurrency (and another firm relocating to West Loop). Even if crypto ends up being a fad, the investments, relocations, and attention Illinois has attracted will have a long-term impact on investor's perception of the State

From Bitcoin mining to ATMs, Illinois is positioning itself as a center for the booming cryptocurrency industry

City of the big shoulders, hog butcher for the world, Chicago is looking to add another title for the digital age: cryptocurrency finance center.

From one of the Midwest’s largest cryptocurrency mining facilities to a Chicago-based Bitcoin ATM operator, Illinois is becoming fertile ground for the fast-growing digital asset industry, which has developed from an arcane concept into a booming investment in a little over a decade.
....
“The real expert, the final arbiter of what’s happening, is the market itself,” said David Carman, a fintech consultant and board member at Global DCA, a Chicago-based cryptocurrency industry association. “People can pass judgment on Bitcoin all they want, but when you have a market that has reached over a $1 trillion, this is way beyond proof of concept.”
....
With valuations growing, Illinois legislators are weighing a bill that would create a special purpose depository trust for digital assets, providing a regulatory framework for banks and other custodial institutions to hold cryptocurrency accounts for clients. The proposal, which unanimously passed the House in April, did not make it through the Senate before summer recess, and will likely be taken up in the fall.

If it passes, the bill would make Illinois the second state behind Wyoming to allow special trusts to hold cryptocurrency. In 2020, cryptocurrency exchange Kraken became the first digital assets company in the U.S. to be chartered as a bank under Wyoming law. In addition to encouraging digital asset banks and exchanges to locate in Illinois, the proposed legislation could help build a broader ecosystem, turning Chicago into the cryptocurrency financial center of the U.S., according to its backers. “It’s not only just about the charter itself, but it’s also the signal to businesses who are dealing in this space that we will create a stable regulatory environment,” said Rep. Margaret Croke, D-Chicago, the bill’s chief sponsor. “This is the one time we could beat New York in financial services or in an emerging industry.”
....
The mining process requires huge amounts of electricity. The Cambridge Bitcoin Electricity Consumption Index pegs the energy consumed annually by the Bitcoin network at 96.63 terawatt hours of electricity — more than the amount consumed in a year in the Philippines or Kazakhstan, for example.

Sangha Systems, a New York-based company, launched one of the Midwest’s largest cryptocurrency mining facilities in fall 2019 at a former steel mill in Hennepin, about 100 miles southwest of Chicago. It is planning to convert it to solar power to address growing concerns that the industry is creating a huge carbon footprint.
....
Founded in 2015, CoinFlip is a Chicago-based Bitcoin ATM operator with more than 2,500 machines across 47 states, including more than 100 in Chicago and the suburbs. Many of the machines are at gas stations, convenience stores and restaurants — the same places you might find traditional bank ATMs.
....
The CME broke new ground when it began trading Bitcoin futures in 2017. Since then, a growing list of dedicated cryptocurrency exchanges have sprung up, including one that recently moved to Chicago. FTX.US, a fledgling cryptocurrency exchange previously based in California, opened its primary office in the West Loop on Wednesday. The exchange, which launched last year during the pandemic, has an average daily volume of $150 million in spot cryptocurrency trades and is growing rapidly, according to Brett Harrison, 33, president of FTX.US.

https://www.chicagotribune.com/busin...v3y-story.html

[the urban politician]

River North is getting in on the freight logistics fun. Article is pay locked:

https://www.chicagobusiness.com/comm...ce-river-north

[Randomguy34]

Originally Posted by the urban politician

River North is getting in on the freight logistics fun. Article is pay locked:

https://www.chicagobusiness.com/comm...ce-river-north

Gotcha covered, there's also mention of 311 W Huron St. moving forward

Freight logistics firm eyes hiring spree at new River North office

Trucking company U.S. Xpress Enterprises is planning a hiring spree in Chicago and has leased a big new office in River North to make room for its growing local team.

In an expansion and relocation of its downtown office, the Chattanooga, Tenn.-based freight logistics firm has inked a 10-year deal for 40,000 square feet at 306 W. Erie St., the company and building owner North Wells Capital announced. U.S. Xpress will be the anchor tenant with three floors of the recently-expanded loft office property when it moves in early next year, relocating from a roughly 6,000-square-foot space it leases today at 216 W. Ohio St.
....
It's unclear how many people U.S. Xpress plans to hire in Chicago, but the firm said in a statement the new office has the capacity for around 150 employees. The firm is expected to hire tech-savvy workers locally for Xpress Technologies, its growing freight brokerage division, which contracts with third-party carriers for shipment. The company is also ramping up its technology arm to use artificial intelligence to more efficiently manage its fleet of thousands of trucks.
....
Those immediate development plans include a 155,000-square-foot office building North Wells aims to develop next to the Erie building at 311 W. Huron St. Lindsay said conversations with prospective equity partners to finance that project "have gone from speculative to formative" since it signed the U.S. Xpress deal.

[the urban politician]

^ Nice, that’s River North saying to Fulton Market, “Just hold on there, slick, I’ve still got some game left”

[Randomguy34]

Originally Posted by the urban politician

^ Nice, that’s River North saying to Fulton Market, “Just hold on there, slick, I’ve still got some game left”

Honestly the main reason west of Wells St isn't booming like Fulton Market is cause of Ald. Reilly's insistence of keeping it a midrise, low density area. Great transit & expressway access, right next to the Loop, decent spots along the river, plenty of former warehouses, and plenty of other reasons why the area could be much more active. I wouldn't be surprised if the area explodes if there's a new alderperson.

[the urban politician]

^ While true, you don't need tall buildings to have a successful office district. You can pull it all off with a bunch of buildings under 15 stories, which may be quicker to finance and execute.

Do I want that? Of course not, I like taller buildings. But I think that there is still a lot of room to grow an office district in western River North even with Ald Reilly's douche-baggery

[ardecila]

River North has worse access to Metra but far, far better access to the North Side. This site is spitting distance to the Brown Line. Underrated as an office district.

I agree the alder has a lot to do with it. Burnett pretty much allows everything in Fulton Market after a few rounds of minor tweaks. The NIMBYs seem to have given up, WLCO still formally opposes new projects but it's not like back in the 2000s.

[Randomguy34]

The city's housing market is still on fire

Proof that homebuyers aren't avoiding the city

New real estate data should put to rest a persistent rumor that people have forsaken the city in the wake of the COVID-19 pandemic.

In the first five months of 2021, home sales grew by more in the city than in the larger metropolitan area, according to Crain’s analysis of data released this morning by Illinois Realtors, a statewide business group.

From January through May, 12,982 homes sold in Chicago. That’s nearly 23 percent above the five-year average for homes sold in the city in the first five months of the year.

In the same period this year, 50,387 homes sold in the U.S. Census Bureau's nine-county metro area. That’s up about 19 percent from the five-year average.

The comparison is to a five-year average because the housing market took a severe dip in spring 2020. A comparison to last year’s sales yields exaggerated results. For example, May sales in the city look like they’re up 97 percent when compared with May 2020, a time when closed sales represented homes put under contract during the chaotic initial weeks of the pandemic.

It’s true that sales dropped further in the city than in the overall metro area in the first few months of the crisis. In May 2020, city home sales were down 44 percent from a year earlier, compared with 37 percent for the larger metro area. Later, when social unrest swept through downtown neighborhoods, home sales stalled in the neighborhoods near the Loop.

But as the city’s 2020 woes have eased, the improvement in home sales has been stronger in the city than in the larger metro area in Illinois Realtors reports on March, April and May.

https://www.chicagobusiness.com/resi...-avoiding-city

[marothisu]

ShipBob just raised another $200M. One of the heads of the company declined to give their valuation other than it is "well north of $1B." So chaulk up another known unicorn in Chicago.

Their revenue doubled last year to $124M.

They have over 400 employees in Chicago (their HQ) with another 400 in other locations. They plan on hiring another 200 people while expanding their footprint overseas.