Posted: July 2, 2018
Breakfast with the Chairman
TECHNOLOGY & INNOVATION IN THE OFFICE SPACE, AND HOW TO STAY COMPETITIVE IN TODAY'S MARKETPLACE.
Leaders in real estate and development gathered on Thursday, June 20 at a breakfast hosted by Choose DuPage and DuPage County Board Chairman, Dan Cronin for a lively discussion about how changing technology and innovation impact businesses’ office space needs. Business representatives around the table talked about the many ways DuPage County workplaces are evolving to embrace these “offices of the future.” The discussion was led by Paul O’Connor of Hamilton Partners.
“DuPage County’s real estate market has evolved tremendously in recent years,” said Chairman Cronin. “In order to continue driving economic development, we need to ensure we are meeting the needs of today’s market. Ultimately, we hope that by having collaborative discussions like this, we can develop creative solutions to remain competitive.”
The discussion was largely focused on: trends in office spaces and meeting the needs of today’s workforce; the competitive landscape, and how to remain an attractive market; and creative solutions to solving transportation needs.
TRENDS IN OFFICE SPACES & MEETING THE NEEDS OF TODAY’S WORKFORCE
Diana Riekse of CBRE shared CBRE’s recent report: New Workplace Strategies for an Evolving Workforce. Key highlights of the report include:
- 79% of businesses say space use is a top priority.
- 86% of corporate real estate executives say that tenants are adapting the workplace for more collaboration and less cost.
- Today, unassigned seating makes up 51% of workplaces. In three years, it is expected to reach almost 75%.
- Amenities are the #1 thing employees care about in their workplace.
- 64% of tenants are seeking amenities like hospitality and concierge services.
- The top amenity that employees want today (79%) are bike racks.
Linda Sloan of Shared Use Mobility Center said, “I work in a shared workspace with many millennials. As I’ve gotten to know these younger professionals, I’ve found that they work very hard, but their whole world is different than the one I started in – a conventional office space with a hierarchy of people. Millennials are very entrepreneurial, they like flat work structures with opportunity for collaboration, and open work spaces.”
Ray Warner of Franklin Partners, who is re-developing the former OfficeMax headquarters in Naperville, said, “We feel that by raising the bar in the amenity class, it will give tenants an alternative asset to consider when choosing the location of their corporate headquarters. What has been missing [in this market] are the things that attract millennials and companies that are trying to re-brand their vision.”
THE COMPETITIVE LANDSCAPE & HOW TO REMAIN AN ATTRACTIVE MARKET
The group discussed the need for owners to re-invest in their buildings in order to continue attracting tenants to this market. “I think if there is one area I would creatively focus on, it is incentivizing tenants to sign longer-term leases. That can be hard, but that is what can transform an asset,” said Dan Deuter, CBRE. “When tenants are willing to make long-term commitments, the level of investment into the building is higher.”
They agreed that nationally, there is a perception among investors that companies are moving away from the suburbs to go downtown. Dan Hession of Morgan Harbor shared an alternative perspective, “Not everyone is going downtown. We just completed the new HubGroup headquarters in Oak Brook and they wanted to stay in DuPage County. They have a long history in DuPage, and this is where their workforce is located.”
The consensus of the group was—in order to remain an attractive market, DuPage County needs creative solutions and collaboration.
CREATIVE SOLUTIONS TO SOLVING TRANSPORTATION NEEDS
According to CBRE’s Chicago Suburban Office Market Overview, parking ratios have become an increased sticking point within the suburban market as tenants continue to seek improved efficiency and collaboration through historically high-density levels. The higher market vacancy figures among suburban product is in part due to the lack of necessary parking to meet increased tenant demands.
More and more, young professionals are seeking alternatives to driving to work, and the suburban office market needs to find solutions to the first-mile & last-mile commute problem. This occurs when distances between transit stations and centers of employment are too great to walk.
“You need to think very regionally—both within the County and outside its borders, about your network of transportation and how to fill those gaps,” said Linda Sloan.
John Carpenter, President & CEO of Choose DuPage said, “we need transportation solutions to be accessible and simple. This means incorporating low (or no) -tech solutions like walking, mid-tech solutions like biking, and high-tech solutions like electric vehicles.”
Diana Riekse concluded the meeting by saying “Not only our buildings, but also our communities, need to have the amenities people want today. And the only way for this to come to fruition is through collaboration between public- and private-sector leaders.”
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Posted: June 5, 2018
Tentative deal set on O'Hare western access
Article by: Greg Hinz, Crain's Chicago Business
After three years of bitter public feuding, the Illinois Tollway and the Canadian Pacific Railway have reached a tentative deal that finally should clear the way for long-awaited western access to O'Hare International Airport.
The tollway board has scheduled a special board meeting for tomorrow afternoon to vote on a "letter of intent" with Canadian Pacific Railway.
Tollway officials declined further comment in advance of the meeting. But a source close to the matter tells me that, a year and a half after the tollway sued Canadian Pacific Railway before the U.S. Surface Transportation Board and the two resumed talks, a framework compromise has been reached under which the tollway's new Elgin-O'Hare Expressway will be allowed to cross over the huge Canadian Pacific Railway Bensenville rail yard just southwest of O'Hare, but at a different point than under previous designs.
Construction on the road could begin next year, a year later than originally planned, if negotiations for a final contract to implement the tentative deal are successful. The road would run from I-90 south and west past O'Hare, eventually joining with I-294.
It's not known how much the redesign of the southern end of the proposed expressway will cost. But some land swaps likely will be needed, so that Canadian Pacific Railway can regain some operational flexibility it would lose with a huge highway crossing over its Bensenville yard.
The tollway a decade ago thought it had gentleman's agreement with Canadian Pacific Railway that, when it became time to build the expressway, a usage agreement would be quickly reached. But the railroad's position stiffened when it got new management, with the Canadian firm insisting it could not afford to give up any of its property.
Since then, management has changed again and big-name Illinois politicians have become involved, including Sen. Dick Durbin, D-Ill., DuPage County Board Chairman Dan Cronin and U.S. Rep. Raja Krishnamoorthi, D-Schaumburg.
DuPage hopes to win an economic development windfall with western access, replicating what happened in Rosemont on O'Hare's eastern end. But while the latest O'Hare expansion plans call for development of a large entry point and parking lots on the western side of the field, development of a western terminal is not envisioned in the near future.
Related Article: Please, no O'Hare without Western Access
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Posted: May 9, 2018
Powering Business Growth: ComEd's Itasca Substation Expansion Update
Construction has progressed at ComEd’s Itasca Substation expansion project, which is part of a long-range plan to meet an anticipated need for more power in the western O’Hare region. ComEd crews have braved cold temperatures and winter weather to keep the project on-schedule. The Itasca substation expansion project will begin supporting economic development growth in a variety of sectors in Cook and DuPage Counties starting June 1, 2018.
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Posted: May 1, 2018
Chicago Blackhawks CEO Shares Perspective on Building a Winning Culture with DuPage County Business Leaders
Approximately 700 Area Business Leaders Attend 9th Annual DuPage County Regional Outlook Event
Chicago Blackhawks President and CEO John McDonough shared insights into leading a successful organization and building a winning culture before an audience of nearly 700 of the region's top business and civic leaders during the ninth annual DuPage County Regional Business Outlook event on May 2 at the Drury Lane Conference Center. The annual event, hosted by Choose DuPage Economic Development Alliance, Mesirow Financial, and Ice Miller LLP, brings together DuPage County’s business owners and executives, government and education leaders, and other members of the local business community to learn insights about the current regional and national economic landscape, as well as to discuss best practices and growing potential in today’s economy.
During his dialogue with event moderator Lisa Leiter, chief content officer of the Executives’ Club of Chicago, McDonough expressed the importance of making good hiring decisions. He also highlighted the value of cultivating a strong culture of loyalty, candor, and compassion within an organization, and building a team of people who will complement and enhance the company vision.
“The most important executive skill and the most underrated executive skill is hiring. If you don’t hire well, I don't think you have a chance. You can have the greatest blue print for a really good course, but you have to hire the right people who complement and enhance what you have as an organization,” said McDonough. “Consistently, there is a sense in our organization of purpose, there is a very strong sense of humility, and it’s important to be consistent about that.”
Prior to McDonough’s remarks, DuPage County Board Chairman Dan Cronin opened the event via a video address offering a current snapshot of the positive local economic landscape in DuPage County.
“Last year in DuPage County, we had a number of significant new projects—companies that chose to move here, or undertook significant expansion projects and topped $1 million in investment, or added 20 or more new jobs,” said Cronin. “Just last year, more than 11,000 new jobs were created in DuPage County, bringing total employment to over 655,000. Our employment base is strong and growing.”
Following Cronin’s opening remarks, Mark Peterson, president and CEO of Intersect Illinois, shared an update on the State of Illinois’ economic development efforts, noting Illinois ranked third in the nation for economic development projects last year while current competition for economic prosperity is fierce. Chief Global Market Strategist for Invesco, Kristina Hooper, echoed the positive forecast in her global economic outlook presentation. While highlighting infrastructure spending as the fastest return on investment to solve economic development issues, she also advised investors to be prepared for greater change going forward in three key areas including monetary policy, geopolitics, and disruption driven by technological innovation.
Overall, this year’s event highlighted DuPage County’s thriving business climate and reinforced the spirit of innovation and opportunities throughout the business community. Choose DuPage continues to promote the region’s diverse assets, economic strengths, and opportunities for investment in an effort to continue future economic development for the region.
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Posted: April 24, 2018
Governor Recounts Investment and Business Growth Mission to Europe
Substantial investments in Illinois are likely to follow soon
Gov. Bruce Rauner, addressing the media to recap his 10-day investment and business growth mission to Germany and Poland, said today that he and his delegation of Illinois business leaders met with dozens of companies to discuss foreign direct investment in Illinois.
“We talked about some really exciting opportunities that are likely to result in substantial investments in our state in the coming months,” Rauner said. “Our meetings took place at critical stages in the decision process for some of these companies and we made Illinois’ case.”
Rauner revealed details of his mission at the headquarters of the Metropolitan Pier and Exposition Authority (MPEA). Near the end of his trip, he made the official announcement that MPEA will host Germany’s world-renowned manufacturing trade show brand at McCormick Place co-located with the International Manufacturing Technology Show (IMTS).
Combined, Germany’s HANNOVER MESSE and our IMTS will attract more than 125,000 visitors and produce hundreds of millions in economic impact for Illinois, and the City of Chicago and the Chicagoland area.
“This fall we are excited to welcome HANNOVER MESSE to McCormick Square for their first show in the United States,” said Lori T. Healey, CEO, Metropolitan Pier and Exposition Authority (MPEA). “I believe there will be in excess of 125,000 people here this year taking up every square inch of rentable space on this campus for this huge show. That’s a lot of people eating in restaurants, staying in hotels, and providing an economic boost for Chicago and the surrounding area.”
“IMTS has further enhanced its attractiveness as a ‘must attend’ international manufacturing technology destination by partnering with HANNOVER MESSE,” says Michelle Edmonson, Senior Director – Exhibitions Operations & Marketing. “Co-locating HANNOVER MESSE USA with IMTS 2018 increases the show’s emphasis on automation, robotics and Industry 4.0, with approximately 550 additional exhibitors occupying 130,000 sq. ft. of floor space.”
“Growth-minded visitors will attend IMTS 2018 looking for solutions that remove production bottlenecks,” says Peter R. Eelman, Vice President – Exhibitions & Business Development at AMT – The Association for Manufacturing Technology, which produces IMTS. “For many manufacturers, simply doing more of the same thing in a larger space or adding more people isn’t a viable option. Growth requires change, and visitors view IMTS as a change agent. They come to the show knowing that they can find technologies that not just shave minutes off production cycles, but that can positively disrupt their manufacturing approach.”
According to the governor, the mission provided an opportunity to meet with companies that already have Illinois in their sights for investment.
“This trade mission solidified the fact that we have a tremendous opportunity to revitalize our middle class through bringing manufacturing jobs back to Illinois. To do this, however, we need to ensure a strong workforce is in place and is prepared to fill these positions with the right skillsets. At the end of the day, the positives Illinois has to offer far outweigh the negatives,” said Illinois Manufacturers Association President and CEO Greg Baise. “This mission highlighted the employer demand—and incredible opportunity—to develop a direct pipeline of educated students and connect them to a workforce eager to hire them.”
The governor noted that the mission had a marketing aspect, as well. Illinois is the world’s 18th largest economy and its assets are well known to the 200+ German and Polish companies that employ more than 38,000 Illinoisans. But there are thousands more that don’t know the Illinois story.
Intersect Illinois CEO Mark Peterson, whose organization financed most of the trip, was also encouraged by the results. “This is only the beginning of the focused efforts that Intersect Illinois will lead in the coming years. Helping the State of Illinois to recruit new companies from around the world and attract foreign direct investment is exactly what Intersect was created for. We look forward to announcing new investment in the coming months as a direct result of this trade mission.”
“This is an exciting time for DuPage County and the region as a whole. Working closely with the Governor’s Office, the Illinois Department of Commerce & Economic Opportunity and Intersect Illinois, DuPage County has expanded its global footprint with international businesses seeking to relocate, or expand operations here,” said John Carpenter, President and CEO of Choose Dupage.
Consuls General and U.S. Ambassadors arranged for hundreds of prospective investors to hear the Illinois story.
“Over the course of this mission we talked to companies throughout Poland and Germany looking to build and grow relationships with Illinois,” said DCEO Director Sean McCarthy. “By making these connections and selling Illinois assets abroad we can bring a lot of foreign direct investment to Illinois.”
“We met with business and education leaders in two of Europe’s most compelling economies,” Rauner said. “Germany is a mainstay in world commerce and is a $3.4 billion customer for Illinois businesses. Poland is a rising economic star that has parlayed fiscal discipline into more than 25 consecutive years of economic growth. We look forward to seeing where these friendships lead.”
Video of the event is posted here.
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Posted: April 22, 2018
Why to Choose DuPage: Robust Job Market with Excellent Opportunities
2018 First Quarter Economic Indicators show opportunities coming, including hundreds in healthcare
Choose DuPage has released its 2018 First Quarter Economic Indicators Report outlining DuPage County’s continued economic growth. While maintaining the lowest unemployment rate in the region, the average annual salary in DuPage County is higher than both the state and national average. Current employment opportunities in high-paying positions are also available in a wide range of industries throughout DuPage further showcasing it as an ideal location for businesses and job seekers looking to build a life in a thriving community.
2018 First Quarter Economic Indicator Report Highlights:
- DuPage County continues to maintain the lowest unemployment rate in the Chicagoland region at 4.2%, lower than both the State of Illinois (5.0%) and United States (4.4%).
- Industrial vacancy rates are currently at 5.5%; office vacancy rates dropped to 15.3% from 17.5% during the same period last year.
- The average annual salary in DuPage County is approximately $62,000 – higher than both the State of Illinois ($57,000) and United States ($54,000).
Over the next year, the fastest growing industry in DuPage County is expected to be Healthcare Support Occupations with a +2.2% year-over-year rate of growth (adding 350 jobs). The next highest is Healthcare Practitioners and Technical Occupations with 1.3% growth (adding 419 jobs), followed by Personal Care and Service with 1.3% growth (adding 257 jobs).
“DuPage County has consistently maintained the lowest unemployment rate in the Chicagoland region while we continue to bring new business development to the area,” said John Carpenter, president and CEO of Choose DuPage. “The projected growth in the healthcare and personal care sectors alone will add close to 1,000 new jobs over the next year. Our market is robust and this is an exciting time DuPage County.”
The largest major occupation groups in DuPage County are Office and Administrative Support positions (106,367 workers), Sales and Related Occupations (71,836 workers), and Transportation and Material Moving Occupations (49,322 workers). Occupations in the DuPage with the highest average wages per worker are in Management ($118,700), Legal ($101,300), and Computer and Mathematical Occupations ($87,000).Measuring future job growth by the number of advertised open positions indicates there are nearly 20,000 online job opportunities in DuPage for careers in the Computer & Mathematical field, followed by over 15,000 in Management, and tens of thousands more across various sectors in white collar and blue collar industries.
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