Computer System International Inc. in Villa Park Wins the regional Comcast Innovation 4 Entrepreneurs Competition

30 Startups and Entrepreneurs Across U.S. Recognized for Innovative Use of Technology in their Business Comcast Business

Comcast Business announced that 30 small business owners from across the U.S. have been named regional winners in the “Innovations 4 Entrepreneurs Contest” (I4E), a national competition that will award more than $440,000 to up-and-coming companies that are leveraging technology to enhance their business. Each of the regional winners, which included Villa Park-based Computer System International, Inc., receives a $10,000 cash award and the chance to compete for the opportunity to consult with more than a dozen business experts to fuel growth within their organization. 

 

Winners were selected based on essays they submitted regarding how they would use technology to enhance their business. The full list of regional winners and their essays is available here.

 

Computer System International’s Essay

 

The purpose of this innovation is to enhance healthcare utilization beyond hospital walls by inventing the technologies that would allow doctors, hospital staff, and patients to communicate and share information remotely and more efficiently. Our solution will utilize interactive terminals at patient bedsides to seamlessly connect doctors to patients remotely thus facilitating home healthcare and medical assistance all over the world. The solution will also utilize automated medication-distribution model to share medication order data to provide better visibility into patient care and more control of their workflow. The integrated solution will give patients and staff access to multimedia entertainment, communications tools, Skype technology, and electronic health records. The solution will include a touch-screen, web cam, single-sign-on access to an Internet protocol (IP) network, meal choice technology, and access to electronic health records (EHR). The system would need to integrate well with the hospital’s IT environment and provide a better environment for connecting with healthcare records, specialized applications and emerging technologies. The terminals connect to a worldwide IP network that provides access to the Internet, telephony, healthcare records, hospitality services, and multimedia content. The next round of the competition is the public vote, where six businesses will be selected as grand prize winners and receive an additional $20,000 cash award, as well as an all-expenses-paid trip to Comcast Business headquarters in Philadelphia. This year, Comcast Business has partnered with the Charles D. Close School of Entrepreneurship at Drexel University to provide a nationally recognized group of business experts like Robert Irvine, celebrity chef and entrepreneur; Brian Meece, co-founder & CEO of RocketHub; Chuck Sacco, MBA, Assistant Dean, Close School of Entrepreneurship and numerous Comcast executives and Close School professors. Public voting is being held through May 13, 2016. The six grand prize winners will be announced June 6, 2016, with the grand prize winner event in Philadelphia in August. “Since we first launched the Innovations 4 Entrepreneurs program, we have witnessed first-hand how technology can be the differentiator in accelerating customer satisfaction and growing revenue across many types of businesses,” said Denice Hasty, senior vice president of marketing and product management for Comcast Business. “These 30 startups and entrepreneurs serve as a model for other small businesses seeking to grow and expand their operations through the use of advanced technology.”

You can always go…downtown–but does it always make sense?

The urban migration paradigm

From 2010 to 2015, approximately 2.5 million SF was absorbed in the CBD, reflecting 43 relocations from the suburbs. Some of the significant moves include Sara Lee, Motorola Mobility, GoGo, Kraft/Heinz, and ConAgra. These are undoubtedly headline suburban real estate relocations; however, during the same period, the suburbs had more than 16 times that transaction volume by square footage, with over 40 million SF completed, and 17 consecutive quarters of positive net absorption.

 

Suburban Real Estate

Conventional wisdom maintains that the reason for the urban migration is talent attraction, or access to high-skilled labor and a younger, more tech-oriented worker that thrives in an urban environment. True, companies are attracted to young, urban talent, but there is a larger phenomenon of urban migration at play, one that extends from coast to coast. Since the 1970s, many cities have gone through a revitalization, with government funds and private development pouring in to build up infrastructure, housing, and public health and safety programs. For many years leading up to this renewal, the cities were dramatically less safe or healthy, and corporations fled to the suburbs. Fast forward 30 years, and you’ll see many urban dwellers benefiting from access to high-wage jobs, educational opportunities, cultural amenities, walkability and mass transit options. With those changes, companies made a swing back to the cities. Chicago is no exception to this paradigm shift; that is why it is common to see so many young professionals, or Millennials, being attracted to the urban core. A breakdown by submarket shows the West Loop gained 46% of the total space taken by tenants who relocated from the suburbs, and River North absorbed 31%. The results are unsurprising given the access to public transportation and amenity-rich buildings these submarkets offer. Meanwhile, in terms of transactions by volume SF, 45% vacated the North Suburban submarket — in search of a more centralized location closer to younger “tech talent” — with River North absorbing a large portion of the square footage.

Suburban Chicago Real Estate Chicago Real Estate

 

Demographics in Perspective

 

It is important to define “Millennials” and how this age group differs from other generations. According to the Urban Land Institute (ULI), Millennials (also known as Generation Y) are ages 18-36, the most culturally diverse generation and the most likely to live in cities. They are also the most likely to expect to move int he next five years. Generations Xers, ages 37-49, are predominately owners of single-family homes and the least likely to desire urban amenities. Many expect to move to larger quarters within five years. Baby Boomers, likely the Millennials’ parent generation, are ages 50-68 and the most likely to live in the suburbs. Unlike Generation X, boomers are more likely to move to a smaller home, and many are even moving to the city after they retire. Millennials are also more inclined to have large amounts of student loan debt. The Institute for College Access and Success estimates that the average U.S. student debt was $28,950 in 2014, rising 56% from 2004-2014. This increase is double the rate of inflation (25%) over the same 10-year period. In the state of Illinois, the change in average debt was much greater, increasing by 85% during that time frame to $29,984. The growing debt issue has undoubtedly influenced Millennial behavior such as delaying purchasing homes and starting families. According to the ULI survey, 37% of Millennials own, versus 68% and 78% for Generation X and Baby Boomers, respectively.

Generation Comparison

Considering the challenges Millennials face with student debt and lack of access to homeownership, many young people are sticking around in the city. In fact, Nielsen data forecast that the median age will be 36 years in Chicago in 2020, up from 32 years in 2000. The change in age in the city is 14.9% over the 20-year period, compared to 12.6% in the suburbs, suggesting that people will stay in the city longer and delay moving out to the suburbs. Access to talent is clearly one of the main concerns of any company looking to grow and remain competitive, so it is important to consider the labor pool in Chicago. it is evident that the West Loop labor pool is much more robust than the average suburban labor pool, 5,051,218 versus 2,582,875 overall. The size of the labor pool is more than double in the 18-34 age group, the likely target for entry- and mid-level positions.

chicago workforce

The West Loop offers a large office building stock, with 44.2 million SF of rentable building area comprising 19% of the overall metro Chicago market. The submarket also offers proximity to major transportation hubs, including Ogilvie Transportation Center and Union Station. Therefore, it makes sense that this would be a target area for business activity. It is true that the West Loop has a much higher draw for talent; however, suburban labor pools should not be disregarded. To put it into perspective, the suburban labor pools are on par with numerous mid-sized metro areas– such as Denver, St. Louis, Baltimore, Charlotte, and Pittsburgh-all of which have populations (MSA) ranging from 2.4-2.8 million, according to the US Census Bureau. When looking at the overall workforce in Chicago, though, most people work outside the city center. The suburban workforce is nearly four times that of the city, with a total of 2,939,714, according to the US Census Bureau. Also, it is clear that significantly more people live in the suburbs than in the urban core. According to Nielsen data, the total suburban population ages 25-65 is 3,586,985, while the city contains less than half that, housing just 1,535,995. DuPage workforce Furthermore, some business sectors in the suburbs have a larger footprint in the office market, including pharmaceutical, healthcare and telecommunications. The industry breakdown in figure 7 shows the popular industries among occupiers in the suburbs versus the CBD. It is evident that pharmaceutical and healthcare companies as well as telecom tenants have a strong presence in the suburbs, something not seen downtown given the current office stock, which caters to more legal, financial and technology tenants with less-specific building requirements. Thus, companies associated with the pharmaceutical, healthcare and telecom industry sectors would be apt to choose the suburbs over the CBD. occupier industry breakdowns

Cost Component vs. Office Requirement

When looking at wage rates, it is evident that people earn more in the CBD. For example, IT operators with seven years’ experience earn 3.5% more downtown than they would in Deerfield; however, the workforce is generally younger and less experienced in the CBD. If work experience is a high priority for a company, then moving downtown may not be the best option. The cost of real estate is much more expensive in the CBD than in the suburban real estate market – 68% higher for the average asking gross rent. Should space requirements remain the same or grow, staying in the suburbs would be a viable option to save money on real estate costs. suburban real estate costs vs chicago real estate costsWhen occupiers choose the CBD over the suburbs, they are paying a premium for a higher-quality office product. With that choice comes access to younger talent; denser space options; a dynamic business environment; proximity to downtown amenities, clients, and competitors; public transit options; LEED-certified buildings; and the potential to alter the corporate culture or branding.  

CBD Has a Strong Pull, But Suburbs Have A Lot to Offer

Downtown has much to offer companies targeting a younger workforce, or interested in leasing space in trophy buildings, but the suburban real estate market is still a viable option for companies that need to access a more experienced labor pool while managing real estate costs. Other reasons a company would benefit from occupying space in the suburbs include:

  • The suburban real estate market caters to companies having strong programs related to engineering, research and development, pharmaceutical/healthcare, and operations.
  • The corporate environment is strong, with 21 Fortune 500 corporate headquarters.
  • Collar counties offer stable tax rates.
  • Young families continue to migrate to the suburbs, attracted to affordable housing options and strong school systems.
  • The suburbs offer a highly educated workforce. In DuPage County (the second most populous county in Illinois), 46.3% have a bachelor’s degree or higher, according to the US Census Bureau 2013 American Community Survey.
  • Institutional investment is healthy, with investors taking interest in the suburban market and noticing the positive office market fundamentals.
  • There are nearly 40,000 businesses in DuPage County alone, with a labor force of 515,781.

What do companies care about?

CBRE Research conducted a survey of 229 corporate real estate executives in the Americas from a broad range of industry sectors, notably banking and finance, and tech and telecom, which account for 23% and 22% of survey respondents, respectively. The survey found strong consistency among executive mandates in three focus areas: enabling talent, managing costs and expanding influence. Of the survey respondents, 57% see employee attraction and retention driving workplace strategy, while 44% see cost escalation as a leading challenge. Throughout the survey, executives repeatedly noted a need to address ‘skilled labor shortages’, ‘cost escalation’ and ‘economic uncertainty’. Furthermore, demographic shifts have introduced a workforce that is more generationally, culturally and ethnically diverse than ever before. As a result occupiers often make people-centric decisions when selecting markets. While the issues above are common for most companies located in the suburbs, it is important to acknowledge that needs vary, and companies should weigh their options when deciding to stay in the suburbs or relocate. For example, if attracting younger tech talent is in the best interest of the company, then CBD might be the right choice, but if the desired employees need to be more experienced and less costly, then it may be in the best interest of the firm to stay in the suburbs. Ultimately, the choice depends on the needs of the company with regard to cost, labor and office requirements. The following are common deciding factors for and against a suburban to CBD relocation: suburban real estate White Paper Published by CBRE | Matthew Walaszek, Senior Research Analyst  Click here to download a PDF of this white paper  

CyrusOne Shells Out $130 Million to Buy CME Group Data Center

Chicago–AuroraI4-1

CME Group announced that it has entered into a definitive agreement to sell its suburban Chicago data center in Aurora, Ill. to CyrusOne, Inc., (NASDAQ: CONE) a global data center services provider, for $130 million. The transaction is subject to customary closing conditions.   As part of the sale, CME Group will enter into a 15-year lease for data center space and will continue to operate its electronic trading platform, CME Globex, from the data center and will offer co-location services there. CME Group will have the ability to expand co-location services within the leased space going forward. The agreement also outlines the ways in which CyrusOne and CME Group will enhance the range of services available to their mutual customers through connectivity, hosting and data offerings.

 

Chicago–AuroraI2-1

“CME Group is pleased to work with CyrusOne to maintain our co-location services while reducing our real estate holdings in line with our growth strategy,” said CME Group Chief Financial Officer John Pietrowicz. “This transaction allows us to enter into a long-term lease to meet our data center needs while focusing our resources on what we do best – running our exchanges, providing global risk management and offering a broad range of technology services. Further, by entering into this relationship with CyrusOne, CME helps to ensure that our customers will have cost-efficient access to an even broader set of infrastructure and data services, including disaster recovery, cloud access, data storage and high-performance computing.” “The acquisition-leaseback of this facility offers unique advantages to our customers involved in the global financial markets by providing connectivity to those transacting on the CME Globex platform. With this facility, and with CME Group as our tenant, we are excited to have the opportunity to expand the global risk management campus in Chicago – the preeminent financial services co-location hub in the industry – which will be a cornerstone of our unique and rapidly growing data center platform,” said Gary Wojtaszek, president and CEO, CyrusOne. “This acquisition helps solidify our position in the financial services market and will create additional FinTech opportunities by offering a unique ecosystem to our financial, energy, enterprise, and cloud customers.” Through this acquisition, CyrusOne will increase the size of its portfolio to 33 data centers across US, Europe, and Asia, and strengthen its offerings within the financial services market. The facility is approximately 428,000 square feet. It features next-generation security, fire protection, and infrastructure enhancements.