Category: Business Climate

Report showcases DuPage as the premier business location with the lowest unemployment in the region

 

The 2015 Annual Economic Indicators Report confirms DuPage County as a thriving business climate due to its low unemployment, skilled workforce, high quality of life and growing business sector. The report reinforces DuPage County’s attractiveness for job creators and entrepreneurs at a time when the state and communities like Chicago struggle with high taxes, pension challenges and a hostile business climate. The report was compiled from Choose DuPage member data and professional economic data provider EMSI.

 

2015 Annual Economic Indicators Report Highlights:

• DuPage County has the lowest unemployment rate at 4.5% in the Chicagoland region, and far below the state at 6.4%
• DuPage County sales tax receipts have increased by 5.5% reaffirming a strong and welcoming business climate
• DuPage County‘s largest and fastest growing industries include healthcare, retail, scientific and manufacturing
• Suburban office leases are priced 66% lower per square foot than Chicago’s Central Business District, helping to drive DuPage’s lowest industrial vacancy in the region of 5%

 

“The families and businesses of DuPage County are thriving as local commerce and business development continues to flourish,” said John Carpenter, president and CEO of Choose DuPage. “Driven by our skilled workforce, high quality-of-life and premier location, new businesses have made DuPage their home and local industries continue to expand and grow their footprint. This report highlights DuPage County as a premier business location during a time when the state of Illinois is lagging.” At the time of the report, DuPage County’s unemployment rate was the lowest in the region and among the lowest in the state at just 4.5%, while the Illinois Department of Employment Security (IDES) showed the City of Chicago was far higher at 6 percent. The Bureau of Labor Statistics currently ranks Illinois as one of the highest unemployment rates in the United States at 6.4 percent. In addition to these economic impact report findings, DuPage County was recently named Illinois’ Healthiest County by a study published in collaboration by Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute. The study surveyed overall health outcomes, social and economic factors, as well as physical environment including education, crime and employment.

Written by: Richard R. Klicki | Daily Herald | View Article

Moderator James Elsener, Daily Herald Business Ledger, leads the Newsmakers’ Forum discussion. Photo Credit: Brian Hill | Daily Herald Staff Photographer

 

Despite the uncertain economy and headlines of companies leaving the suburbs for downtown Chicago, the suburban commercial real estate market remains healthy, industry experts told local business leaders Thursday at the Daily Herald Business Ledger Newsmakers’ Forum on Construction and Real Estate. About 90 suburban leaders attended the event at the Hilton Lisle/Naperville. 

 

Art Rendak, president of Inland Mortgage Capital Corp. based in Oakbrook Terrace, said the suburban real estate market continues to go strong despite uncertainty in the economy. “The economy should be doing better than it is, obviously,” Rendak said, noting that low oil prices, mortgage rates and unemployment figures should be translating into a more robust economy.

 

However, he said suburban real estate, especially industrial and office properties, has been strong as companies grow and relocate to larger facilities. He noted the distribution industry has particularly risen as new facilities are being built locally to handle the growing demand.

 

“You just can drive from Wilmington, up (Interstate) 55 to Bolingbrook to see the tremendous growth of industrial,” Rendak said. “Especially if you’re outside Cook County, where the taxes are cheaper, you’re going to continue to see a lot of growth in the distribution sector.”

Bryan Gay, Choose DuPage

 

Bryan Gay, economic development director of Choose DuPage, noted DuPage County’s surge in growth in the number of businesses over the years. In 2015, he said, 900 new small businesses opened in the county.

 

“These small businesses are the lifeblood of DuPage County,” Gay said, “Since 2010, we’ve seen over 3,000 new businesses in DuPage County.”

 

He noted the small businesses are just as important as large companies, as they generate local jobs and invest in the communities they are in. He added that, of the 60,000 new jobs created in DuPage County since 2010, small businesses accounted for 60 percent of that growth.

 

All of the panelists spoke of the educated workforce that is a main draw to the suburbs for businesses, and Daniel Allen, executive director of the Construction Industry Service Corporation (CISCO), added that the region also benefits from the educated construction workforce as well.

 

“Union contractors have the highest educated skilled workforce in the world,” Allen said, pointing to education apprentice programs that are funded through union contractors and employees and are created through collective bargaining agreements.

 

Allen was critical of Gov. Bruce Rauner’s right to work initiative, which he said would undermine the funding of the apprenticeship programs and lead to construction deficiencies created by unskilled workers.

 

“On the outside work may look good, but the lack and training and skills create ticking time bombs of public safety issues,” Allen said. “Most of the problems develop over the years after construction.

 

“The term ‘right to work for less’ is a misnomer,” he added. “It’s a policy that prohibits a union from negotiating security clauses with these small businesses.”

 

By nearly any measure, DuPage County’s economy is thriving. Home to nearly 40,000 businesses and 700,000 jobs, DuPage County is a formidable economic force in the region. As a result, DuPage enjoys some very important and meaningful economic advantages. When we consider the issues that weigh on businesses everywhere (not just DuPage) such as the cost of doing business and the ability to recruit and retain top talent — it is these advantages that make the difference for businesses.

 

Location is among our most valuable, inherent advantage. Our proximity to O’Hare International Airport means that residents and businesses alike have direct, nonstop access to 200 destinations worldwide through 1,400 daily departures. We are in the midst of six interstate highways, making drive time to major markets convenient and cost-effective — with less than six hours drive to major Midwest cities. We enjoy the benefits of an extensive multimodal transportation network. Chicago is the nation’s rail hub that connects six of the seven Class One railroads. We have a highly-skilled and educated workforce — DuPage is first in the state in educational attainment. Nearly half our residents over the age of 25 have a bachelor’s degree or higher, and over 90 percent are high school graduates. We have a business-friendly environment. Under the leadership of Chairman Cronin, DuPage County operates an accountable, efficient and transparent government — with a balanced and responsible budget. Unlike many other places, here you will find public and private-sector leaders working together to grow and expand the economy. And finally, as our nearly 1 million residents know, our quality of life is unmatched. This can be attributed to the county’s emphasis on education, culture, and environmental preservation. We have some of the best schools in the nation, including 19 accredited colleges and universities. We offer a wealth of opportunities to experience arts and culture, and our residents and visitors enjoy open spaces, tree-lined streets, and lush wooded areas that characterize our landscape. At Choose DuPage, the economic development alliance for DuPage County, we call this the DuPage Difference. It is what has allowed us to attract the variety of businesses that make up our diverse economy — from technology to manufacturing, retail, warehousing, health care, and more. These advantages, the DuPage Difference, has led to 118 economic development projects in the last year. That’s 1,500 jobs, 1.1 million square-feet of development, and 120 million dollars invested into our county. And, we are well positioned for continued success. In the upcoming year, Choose DuPage will continue to work toward expanding and diversifying the regional economy through actions that stimulate business investment and generate desirable job opportunities for our residents.

Transaction Data from JLL, NAI Hiffman, CenterPoint Properties

 

 

Top industrial Lease transactions of 2015

 

company name	location	square feet
Fellowes	2850 Duke Pkwy.  |  Aurora	499,154
Nippon Express USA	2580 Prospect Ct.  |  Aurora	410,000
Creative Werks	1350 Munger Rd.  |  Bartlett	400,000
H.D. Smith Medical	135-195 E. Elk Trail  |  Carol Stream	334,718
M&R Printing Equipment	440 Medinah Rd.  |  Roselle	319,885
Topline Furniture Warehouse	1321-1375 W. Thorndale Ave.  |  Itasca	310,916
PPG Industries	2760 Orchard Gateway Rd.  |  Aurora	304,560
DS Containers	2500 Enterprise Cr.  |  West Chicago	300,278
RR Donnelley	2707 Eola Rd.  |  Aurora	251,832
Maines Paper & Food Service	6405-6425 Muirfield Dr.  |  Hanover Park	241,423
Insight North America	1600 Hunter Ct.  |  Hanover Park	238,423

 

 

Top Office Lease transactions of 2015

 

company name	location	square feet
Exelon Generation Regional HQ	4300 Winfield Rd.  |  Warrenville	146,754
Houghton Mifflin Harcourt	One Pierce Pl.  |  Itasca	110,000
Kellogg	800 Commerce Dr.  |  Oak Brook	79,828
Flexara Software	300 Park Blvd.  |  Itasca	77,000
Enterprise Recovery Systems	840 S. Frontage Rd.  |  Woodridge	77,000
Multi Plan	535 Diehl Rd.  |  Naperville	67,767
Glanbia Performance Nutrition	3500 Lacey Rd.  |  Downers Grove	67,743
Optimum Nutrition	3500 Lacey Rd.  |  Downers Grove	67,743
Robertshaw	1222 Hamilton Pkwy.  |  Downers Grove	50,000
NSA Media	3025 Highland Pkwy.  |  Downers Grove	50,000
Inland Real Estate Corp.	814 Commerce Dr.  |  Oak Brook	45,756

This list is intended to provide a snapshot of the lease transactions in DuPage County during 2015. While there were an abundance of lease transactions that occurred in 2015, the choice of which to feature here was determined partly on relevancy and availability.

 

Here is the economic indicators report for the fourth quarter of 2015.

 

Sales Tax Receipts

 

DuPage County sales tax receipts were $359 million in the third quarter of 2015, compared to $339 million in the third quarter of 2014. This is an increase of 5.7%. Sales tax receipts are reported on quarter in arrears, compared year-over-year to accommodate seasonal changes.

 

Unemployment Rate

 

The unemployment rate rose to 4.5% in the fourth quarter of 2015, compared to 3.9% in the third quarter of 2015. DuPage County has the lowest unemployment rate in the region, and also lower than both the State of Illinois at 5.9% and the U.S. at 4.8%.

 

Vacancy Rates

 

The office vacancy rate dropped to 16.1% in the fourth quarter of 2015 compared to 16.2% in the previous quarter and 17% at the same time last year. The industrial vacancy rate also declined in the fourth quarter of 2015 to 5% from 5.4% in the previous quarter. The industrial vacancy rate in DuPage County continues to experience an almost continuous five-year decline. Click here to view the full report. 

Moderate economic growth with low interest rates, punctuated with bouts of pessimism and volatility—the factors that have characterized the world economy for the past few years—are likely to continue in 2016, supporting moderate growth in commercial rents and investment sales volume globally, according to CBRE Group, Inc.’s 2016 Global Real Estate Market Outlook, released today. Continue reading →

The DuPage County Board announced recently the County has retained its AAA bond rating, the highest possible, during recent reviews with Fitch Ratings and Standard & Poor’s (S&P).  

County Board Chairman Dan Cronin said the AAA bond rating is especially significant when many government entities are struggling with large deficits or unpaid obligations. This recognition will give the County access to lower interest rates, which in turn provides excellent value for residents. Continue reading →