Chicago Economy thread (Deerfield: layoffs, pros and cons, tax)

[Sunbiz1]

Originally Posted by Kmanshouse

Oh YAY!! Another Chicago thread where everyone just says one negative thing after another!

Just what we need!

If it comes from residents, and the shoe fits...well.
And cheap professional sports team owners aren't helping your economy.

[Bitey]

Originally Posted by Vlajos

This is terrible.

"Speaking roughly 24 hours before a ceremony that will see Johnson succeed his similarly aligned predecessor, Terry Duffy said CME Inc. is set to leave the city"

The exchanges are the only things that make Chicago's economy unique at this point.

Update, it's in Crain's as well.

https://www.chicagobusiness.com/fina...policy-changes

Hopefully Johnson will pull back on his insane LaSalle Street tax initiative. Money is way too mobile these days

[personone]

The Chicago economy is going to be in serious trouble with this Woke Impostor at the helm. The details of his agenda are outright scary, and he’s already signing disastrous executive orders:

https://www.msn.com/en-us/news/opini...47763b47&ei=54

This guy is plain scary…..

[UptownGuy3]

Chicago's economy seems pretty resilient to be honest.

There's been some headline grabbing departures but Chase alone has added more jobs to their Chicago offices in the past two years than Boeing, Caterpillar and Citadel has moved combined. This is anecdotal, but a friend of mine who works at Citadel has said that not many people are taking the opportunity to move to Miami, so while they are moving on paper (and tax-wise) the vast bulk of their employees are staying put, same situation with Guggenheim. The tech and finance talent pool in Miami seems to leave quite a bit to be desired.

Lot's of pharmaceutical companies have been expanding into Chicago this year, with Xeris Biopharma moving from California moving into a new office in Fulton Market, the Chan Zuckerberg Biohub coming in, and lot's of commercial lab space in the pipeline. Boston is currently one of the bigger bio-pharma markets, but it's such an expensive market to live in, maybe we can court some more firms from the coasts.

Johnson seems to be turning out to be a bit of a paper progressive. Pritzker seems to have had some serious talk with him and he's already walking back most of his tax proposals, which means progressives will probably be mad, but whatever. The CEO of Sterling Bay has had a talk with Johnson already and seems to be really optimistic about working with his office relative to Lightfoot.

I just don't buy the doom and gloom, there are cranes and construction projects all over the neighborhoods that surround downtown. The Loop's big problem is that it's commercial real estate stock is aging, pushing headquarters to brand new Class A space in River North and West Loop. Those aging office towers need some creativity, lots of proposals for residential re-use. Which could lead to some positive developments down the line. The loop has been dead after 6 as long as I've been alive, meanwhile the milwaukee corridor, river north and fulton market are bustling well into the early morning. The Loop needs to take cues from those neighborhoods and become a mixed use 24/7 area.

Development is booming in the neighborhoods as well. Not sure if anybody has been in Uptown lately but there are new apartments on every other corner. Bronzeville is booming, I feel like a new group of 2-3 flats is being announced every other week. Lot's of mixed use buildings getting approved on the main commercial drags down there replacing empty lots. The Michael Reese redevelopment is breaking ground this year. It's going to look pretty different down there in a decade. We've got Lincoln Yards chugging along bridging Lincoln Park and Bucktown with lot's of ancillary developments being announced nearby. Halsted Point is breaking ground later this year bringing highrise residential to Goose Island.

I don't even think I need to mention Fulton Market. Fulton Market has basically resulted in a new mid-size city being developed next to downtown. Here's a good breakdown of everything getting built over there, it's actually wild.

We have a lot of problems as a city, sure. But I'm far more excited for the future than I am pessimistic.

[aga412]

Originally Posted by UptownGuy3

Johnson seems to be turning out to be a bit of a paper progressive. Pritzker seems to have had some serious talk with him and he's already walking back most of his tax proposals, which means progressives will probably be mad, but whatever. The CEO of Sterling Bay has had a talk with Johnson already and seems to be really optimistic about working with his office relative to Lightfoot.

As Brandon is an empty vessel for the teacher's union, being completely out of his depth and with a dash of being completely self-interested / only interested in power, I'm sure he'd far more likely roll over for more people. I'm sure the CEO of Sterling Bay was just interested in making sure he specifically wouldn't be screwed over relative to the rest of the "peons" that would be impacted by BJ's proposals.

[BRU67]

Originally Posted by personone

The Chicago economy is going to be in serious trouble with this Woke Impostor at the helm. The details of his agenda are outright scary, and he’s already signing disastrous executive orders:

https://www.msn.com/en-us/news/opini...47763b47&ei=54

This guy is plain scary…..

So they took a new job position, Deputy Mayor of Labor Relations, and read a whole ton of speculation into it. Not surprising given it was brought to you by Fox News. They want us to fail, as that's what their red state, tract home, suburban readership wants to happen, so they can feel good about their lives.

Meanwhile, in actual news, the Johnson Administration has distanced itself from a radical taxation proposal called "First We Steal Your Money" or something, drafted by a group of lefties. I tried but I was unable to find this story on the Fox News site, so I'll post the link here...

https://chicago.suntimes.com/city-ha...sition-revenue

I did not vote for the guy and did not like much of what he said during the campaign. And I'm certainly taking a wait and see approach here. But that's a good sign, and hopefully he realizes that chasing businesses out of the City will not be a very good idea forward.

[Grlzrl]

Originally Posted by wjj

The IRS tracks migration of people and adjusted gross income from state to state every year. They have been doing it for a long time and is one of the most accurate measures of the economic impact of out-migration. Anyone can download the data. In the latest year available (2020-2021) Illinois lost a NET adjusted gross income of $8.5 BILLION. Not only are higher income people moving out but those moving in earn about 40% less than those who are leaving. Tracking the IRS data, this has been going on for quite a long time. At the current tax rate, $8.5 billion would have generated about $420 million in tax that has gone elsewhere. The largest recipients of Illinois out-migration income were Florida, Texas, Indiana, and Wisconsin.


This report summarizes the data for Illinois very well. They issue reports every year. At least Illinois was not the worst state. California and New York fared even worse.


https://wirepoints.org/bleeding-peop...20-wirepoints/

Keep in mind, $8.5Billion is for ONE year.

[Grlzrl]

I am betting CME will pull the trigger soon.

[thefallensrvnge]

I've had to take most projections and estimates with a grain of salt, including the Census which has been wildly off in Illinois. Also, who knows how the commercial real estate issue will play out, a problem that isn't unique to Chicago. The US (and the world, really) is in a state of flux. Chicago may follow the trend to have a more residential downtown as it is still apparently the fastest growing downtown in the country.

On the bright side, Chicago metro has been named the #1 location for corporate relocation/expansion for the 10th year in a row: https://chicago.suntimes.com/busines...ction-magazine

[quigboto]

Originally Posted by thefallensrvnge

I've had to take most projections and estimates with a grain of salt, including the Census which has been wildly off in Illinois. Also, who knows how the commercial real estate issue will play out, a problem that isn't unique to Chicago. The US (and the world, really) is in a state of flux. Chicago may follow the trend to have a more residential downtown as it is still apparently the fastest growing downtown in the country.

On the bright side, Chicago metro has been named the #1 location for corporate relocation/expansion for the 10th year in a row: https://chicago.suntimes.com/busines...ction-magazine

That kinda flies in the face of the "Companies are fleeing Chicago in droves" posts around here, doesn't it?
Although I would be curious what pace companies are leaving vs what pace companies are moving in.
(The article is behind a paywall, so I can't see if that question is addressed at your link)