Category: Business Climate

Mark Moran, executive vice president and partner with NAI Hiffman in Oakbrook Terrace, and Choose DuPage board member, has seen plenty of industrial markets. So he knows a strong one when he sees it. Today, he sees an exceptionally strong industrial market in the Chicago area. Moran recently spoke with Midwest Real Estate News about the reasons behind the industrial activity taking place now in Chicago.

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Suburban Office Market

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DuPage County economy flourishing; unemployment rate remains lowest in region while industrial and office vacancies attract new business

The 2016 First Quarter Economic Indicators Report confirms DuPage County’s thriving business climate due to its low unemployment rate, growing business sector and declining office and industrial vacancy rates. The report findings further indicate an estimated $350 million opportunity for retail expansion to meet current consumer demand; a substantial growth opportunity for additional business development. 

2016 First Quarter Economic Indicators Report Highlights:

• DuPage County continues to maintain the lowest unemployment rate in the Chicagoland region at 5.3%; far below the state’s 6.8% unemployment rate.
• DuPage County industrial vacancy rates have decreased to 4.8% compared to 5.6% at the same time in 2015; 1.9 million square feet of industrial space has been absorbed in just the first quarter of 2016 showing strong industrial development.
• DuPage County office vacancy rates have also decreased by 0.9% over the past year with 522,000 square feet of office space being absorbed in the first quarter; space is being acquired by new businesses moving into the area as well as the expansion of existing DuPage businesses.
• DuPage County has an estimated $350 million retail growth opportunity to meet current consumer demand from its nearly one million residents.

“This report highlights DuPage County as a premier business location with enormous retail development potential and space for commerce to grow,” said John Carpenter, president and CEO of Choose DuPage. “We have a population of almost a million people in DuPage—including a highly skilled workforce. New businesses continue to make DuPage their home, while local industries remain strong and continue to expand and grow their footprint. There is a great opportunity to be cultivated here.”

DuPage County has shown promising activity in the first quarter of 2016 with new developments coming to the area including Minneapolis-based developer Ryan Companies’ purchase of an 11-acre Oak Brook property with proximity to both I-88 and I-294 which it plans to transform into a major 300,000 to 400,000 square foot multi-building office development. Local leading accounting, advisory and technology firm Sikich increased its total footprint in Naperville by 50%, while other local companies including AMITA Health and ConPac Group signed new leases in the area. In just the first three months of the year, a combined total of more than 2.4 million net square feet of office and industrial space was absorbed indicating positive development and further growth for DuPage County.

The report was compiled from Choose DuPage member data and professional economic data provider EMSI.

Originally published by: Chuck Sudo, Bisnow Chicago | View Article While it’s true more companies are flirting with downtown moves to court and attract a younger workforce, a read past the headlines indicates the suburbs are more than holding their own—in fact, many suburban markets are thriving.

A recent report from JLL separates fact from fiction in suburban office markets. JLL research director Christian Beaudoin and SVP Todd Schaefer (pictured with JLL managing director Sean Reynolds, right) say this report serves as a reminder of the stability found in the suburbs. Let’s take a look at some of the myths they debunk.

Myth No. 1: All Millennials Want to Live in the City

Fact: A JLL/Choose DuPage survey found that 48% of Millennials working in DuPage preferred working in the suburbs. What these younger workers do have a problem with is commuting to work. The survey also determined that 53% of respondents wanted alternatives to driving to work, and 46% of Millennials are commuting more than 45 minutes to their jobs. Christian says office landlords are exploring options such as shuttle services to Metra stations, but that this becomes harder to subsidize the farther out of the urban core workers travel.

Myth No. 2: Companies Moving Downtown Shun the Suburbs Completely

Fact: Of the 22 suburban companies whose moves to the CBD made headlines last year, 77% of them also opened or maintained a suburban presence. Todd says the main reason for this dual-location strategy is not only to attract and retain Millennial talent, but to be closer to potential clients. Christian adds another advantage is to provide options for workers in different job functions. While a downtown office presence may be right for sales, tech or creative positions, a suburban office (where rents and labor costs are lower) can be appropriate for call centers and back office operations.

Myth No. 3: Suburban Office Markets Have Been Slow Over the Past Four Years

Fact: Aon, Zurich and Zebra Technologies have accounted for three of the four largest lease transactions in the suburbs, and companies committing to leases over 50k SF the past four years accounted for more than 13M SF of transactions. Growing companies see value in these markets as destinations for their businesses, which Todd says is a testament to the suburbs.

Myth No. 4: The CBD Presents Better Opportunities for Tenants and Investors

Fact: The city and suburbs benefit equally from easy access to O’Hare and Midway International Airports, growing tourism numbers, and Chicago’s position as a logistics hub. Christian says tenants and investors don’t have to subscribe to an either-or scenario and that working together, both Chicago and the suburbs provide excellent opportunities for companies and employees.  

DuPage County is a great place to build and grow a business, but as many of our local companies know, more than 70 percent of the world’s purchasing power is located outside the U.S., and international markets offer great potential for growth and expansion. More than 22,000 companies exported from Illinois in 2013, including many with fewer than 500 employees. These businesses have not only grown their bottom lines, but have also created jobs here in DuPage County by reaching untapped markets abroad.