CHICAGO | General Developments

[sloop.chi]

Todays Crains has an article that Google (not Motorola portion) will be moving to Fulton Cold Storage building. Impact on the area is very positive but because land prices increase, the only option for developers is to move higher in terms of height to make the space rentable and have a return on the investment.

And of course, this all very doable EXCEPT if local opposition has its way as it has in the past, this will go no where.

Will limit my soap box, but these are the opportunities our elected officials must push back on the small but loud contingent of NIMBYs against these developments. We as a city must build and grow the areas that offer the potential for development and people actually want to live in. There is a multiplier positive economic impact for not just the neighborhood but surrounding neighborhoods as well.

We need to fight the fight and increase the odds of development being approved where private businesses want to do business.

[wierdaaron]

Was that deal made before they started the renovation?

[sloop.chi]

Originally Posted by wierdaaron

Was that deal made before they started the renovation?

I dont know specifically, but I wouldnt be surprised. The renovation is a big one, and I am sure they wanted some type of concrete tenant before moving ahead. Then again, they might have just had the confidence to take the risk knowing the type of product they had.

[wierdaaron]

^That was my thought. It's such an ambitious project, it makes sense that they would have had a private agreement with Google for the space before they put up the money for the renovations. Google could have not wanted to announce it for whatever reason.

A major Google presence, rather than the tiny office in River North and whatever's going on with Motorola in Merch Mart, would be pretty exciting for the area. There's a lot of Groupon employees tapping their feet with their eyes on the door who Google would love to poach, I'm sure. The web sector has stayed strong in the city, and only gets stronger. The company I work for just announced they're doubling their Chicago workforce by next year.

[jc5680]

Originally Posted by sloop.chi

I dont know specifically, but I wouldnt be surprised. The renovation is a big one, and I am sure they wanted some type of concrete tenant before moving ahead. Then again, they might have just had the confidence to take the risk knowing the type of product they had.

They already had a concrete tenant, a rather large one at that. SRAM is putting their global headquarters there which includes office space a product development machine shop, and an internal cycling test track.

[ardecila]

Originally Posted by wierdaaron

A major Google presence, rather than the tiny office in River North and whatever's going on with Motorola in Merch Mart, would be pretty exciting for the area. There's a lot of Groupon employees tapping their feet with their eyes on the door who Google would love to poach, I'm sure. The web sector has stayed strong in the city, and only gets stronger. The company I work for just announced they're doubling their Chicago workforce by next year.

The new office is only 33% larger than the existing one. (200k sf vs 150k sf). It is currently and will remain sizable, but it does not compare to their presence in New York or California.

This new location has the added benefit of being literally one block from the new Green Line station. This means a substantial number of employees will have an easy transit commute, at least if they live in the Loop/South Loop. 1KFulton will have some parking, but probably not much. It looks like one underground parking level beneath the annex, so maybe 100 spaces?

[jc5680]

Originally Posted by wierdaaron

^That was my thought. It's such an ambitious project, it makes sense that they would have had a private agreement with Google for the space before they put up the money for the renovations. Google could have not wanted to announce it for whatever reason.

A major Google presence, rather than the tiny office in River North and whatever's going on with Motorola in Merch Mart, would be pretty exciting for the area. There's a lot of Groupon employees tapping their feet with their eyes on the door who Google would love to poach, I'm sure. The web sector has stayed strong in the city, and only gets stronger. The company I work for just announced they're doubling their Chicago workforce by next year.

Locally, google has a lot less to do with the software/services they produce. It is really much more a sales/support staff for ad sales and corporate/business services like google apps for business, etc. So, the poaching/hiring of developers/engineers/designers is not really that likely, locally.

[wierdaaron]

Right, I was imagining the possibility of them expanding to some development workforce in the city. With Motorola they're learning how to keep engineers happy in the city, bringing the offices downtown from the suburbs because young nerds want to be urbanites these days. Google expanding its offices into a new building with lots more room to expand into could be a sign of things to come.

Or it could be nothing.

[harryc]

Conversion continues.

[marothisu]

Originally Posted by wierdaaron

Right, I was imagining the possibility of them expanding to some development workforce in the city. With Motorola they're learning how to keep engineers happy in the city, bringing the offices downtown from the suburbs because young nerds want to be urbanites these days. Google expanding its offices into a new building with lots more room to expand into could be a sign of things to come.

Or it could be nothing.

Yep, it is definitely more sales oriented, but they do have some software engineers. At least I noticed a job posting for one:

https://www.google.com/about/jobs/se...=jo&jid=43142&

[killaviews]

Originally Posted by sloop.chi

Todays Crains has an article that Google (not Motorola portion) will be moving to Fulton Cold Storage building. Impact on the area is very positive but because land prices increase, the only option for developers is to move higher in terms of height to make the space rentable and have a return on the investment.

And of course, this all very doable EXCEPT if local opposition has its way as it has in the past, this will go no where.

Will limit my soap box, but these are the opportunities our elected officials must push back on the small but loud contingent of NIMBYs against these developments. We as a city must build and grow the areas that offer the potential for development and people actually want to live in. There is a multiplier positive economic impact for not just the neighborhood but surrounding neighborhoods as well.

We need to fight the fight and increase the odds of development being approved where private businesses want to do business.

Its great, but I think it says something about the Loop. It perpetuates the image of the old stodgy Loop. I was hoping the Loop would eventually get bars and restaurants like the ones located around it in River North, West Loop, and Fulton Market. It seems less like downtown expanding, and more like downtown separating. Would Google ever even consider Loop proper?

[jc5680]

Originally Posted by killaviews

Its great, but I think it says something about the Loop. It perpetuates the image of the old stodgy Loop. I was hoping the Loop would eventually get bars and restaurants like the ones located around it in River North, West Loop, and Fulton Market. It seems less like downtown expanding, and more like downtown separating. Would Google ever even consider Loop proper?

I don't know, I am not convinced that plays a role in any significant way. The 'cooler' creative focused businesses in this city tend to be north of the river because of economic/business size factors more that perception. There are lots of ad/marketing/design agencies, web development companies, startups, etc. that only need small amounts of space and little in terms of building amenities.

I think google's move further out of the loop is more telling of their intentions in Chicago, rather than their(and others) perception of the loop.

[LouisVanDerWright]

Originally Posted by killaviews

Its great, but I think it says something about the Loop. It perpetuates the image of the old stodgy Loop. I was hoping the Loop would eventually get bars and restaurants like the ones located around it in River North, West Loop, and Fulton Market. It seems less like downtown expanding, and more like downtown separating. Would Google ever even consider Loop proper?

I doubt they would, there simply are no buildings there that offer the kinds of amenities that tech companies are looking for. I have a feeling we are at the beginning of a transitional period where parts of the loop are going to rapidly switch use from office to residential. Obviously we've already been seeing this to some extent, but it is only a matter of time, in my opinion, before we see more 55 E Monroe style conversions of mid century office spaces into other uses (like IBM Building switching to part hotel, for example). The class A+ stuff all seems to be focusing on the river and Wacker Drive for obvious reasons. Most high end office users don't want to be buried in the thicket of highrises that is the loop proper, but the East Loop is starting to turn into a somewhat exciting place to live. Only seems natural to see a continued gradual change of use.

[Chicago_Forever]

^^ I disagree. I think the Loop is becoming more residential which is what it really needs. I think more residents is what's going to bring in more bars and restaurants to the Loop and give it a more 24/hour vide.

[ardecila]

Sounds like you agree perfectly.

The office market - for old economy businesses like finance, manufacturing, retail, etc has gradually shifted westward to be closer to the Metra stations, where the suburb-dwelling executives step off the train. River North has boomed with new economy stuff like tech and creative because it is convenient to the Brown/Red Line and North Side bus lines, which urban-dwelling creatives ride to work.

Google's move to the West Side is a big deal - it's not convenient to any transportation options. It's on the L network, but everybody who lives on the North Side would need to transfer to the Green Line, and rail-rail transfers are particularly sucky in Chicago. The Halsted bus is also an option, but not a very fast or convenient one. Conventional wisdom says Google employees will respond by driving, but Sterling Bay is not providing much parking and street parking is not a great option. I'm betting bicycling will be hugely popular for these workers.

[Rizzo]

I've found it interesting how the downtown area sectors itself into certain types of business. Ditto to what ardecila says. I also noticed alot of advertising and marketing business along N. Michigan Ave and architecture and engineering firms tend to be very prevalent along S. Michigan ave fronting the park. Then of course you got all the law firms near the courts. It would be cool if someone created a diagram to show various concentrations of different professions.

I find all of this a very healthy indicator of downtown. You generate this critical mass of like-professions that just makes areas more marketable to attracting jobs. Hats off to google though for pushing west beyond Halsted. I really want to see this area develop as a job center. It's an opportunity for building up density and desirability.

[killaviews]

I'm a jealous Loop worker. I just want some of those dining and happy hour options of the other areas in the loop. And with Google looking at space all the way over in Fulton Market, it seems like I'll be stuck with Elephant and Castle for the foreseeable future.

I agree that the Loop will gain more residents, but I'm skeptical it will help because I think its more about image than numbers. If you put Little Goat in the middle of the Loop, I doubt it would do less business than it does now. Its not there, and nothing like it is there, because the perception is that the Loop is for business execs lunching and theater goers.

[the urban politician]

Originally Posted by sloop.chi

Will limit my soap box, but these are the opportunities our elected officials must push back on the small but loud contingent of NIMBYs against these developments. We as a city must build and grow the areas that offer the potential for development and people actually want to live in. There is a multiplier positive economic impact for not just the neighborhood but surrounding neighborhoods as well.

We need to fight the fight and increase the odds of development being approved where private businesses want to do business.

^ Where is this coming from? If indeed the market does begin to favor highrise office development in River North, we will see if there will be a NIMBY backlash. But based on the numerous number of residential highrises that have already been built in the area without even the faintest grumble, I highly doubt this will be a significant issue moving forward.

[the urban politician]

Originally Posted by killaviews

I'm a jealous Loop worker. I just want some of those dining and happy hour options of the other areas in the loop. And with Google looking at space all the way over in Fulton Market, it seems like I'll be stuck with Elephant and Castle for the foreseeable future.

I agree that the Loop will gain more residents, but I'm skeptical it will help because I think its more about image than numbers. If you put Little Goat in the middle of the Loop, I doubt it would do less business than it does now. Its not there, and nothing like it is there, because the perception is that the Loop is for business execs lunching and theater goers.

I really think the Loop is just fine. There is nothing wrong with a bonafide office district that hums along Monday thru Friday but is otherwise dead at night and on the weekends. It allows for wonderful things to happen without disturbing peoples' lives at home. Lets not tamper with a beautiful thing.

Besides, as others have long observed, the East Loop is already halfway there in becoming a residential district.

[Ch.G, Ch.G]

Originally Posted by the urban politician

But based on the numerous number of residential highrises that have already been built in the area without even the faintest grumble, I highly doubt this will be a significant issue moving forward.

Er, Wolf Point? Canyon Ranch Living?