Category: News

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

Top Office Lease transactions of 2015

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.