Commerical Chicago

¶ … Commercial Real Estate Market in Chicago, Illinois

MBA Personal Statement

Take the reader on a 'tour' of what you think is a developing business opportunity or arena. (Choice: The commercial real estate market in Chicago, IL). Explain why you think this area will have growth and potential in the upcoming years and how an MBA will give you the necessary personal skills to explore this area.

Chicago has rarely been a 'sexy' city on the American cultural landscape, particularly the sweaty, gritty and soiled face of commercial and industrial Chicago. Chicago has long been known as the windy city, or the city of big shoulders, not the city of flash, fast cash and sweet deals. But all of this may be poised to change. Chicago's most recent claim to real estate fame has been that the first selected "Apprentice," Bill Rancic, chose to oversee the demolition of the Sun-Times Building in the middle of downtown Chicago and the construction in its place of the new Trump Tower Chicago, eschewing California, the other available location for him to exercise his talents. (Soto, 2004)

But such media hoopla is not the only clue to the savvy that Chicago's temporarily low profile in the commercial real estate market may be poised for a dramatic change. The 'buzz' on the street comes not primarily because of the construction of this Trumped-up tower, but rather because of the many still-untapped commercial real estate opportunities in Chicago that stand ready to take the rest of the world and the country by financial storm.

According to the online trade publication, RE-jounals.com, the combination of lower land prices, lease and investment opportunities, and an expanding nearby Chicago labor pool has meant that the attraction for the city's nearby suburban commercial locations, such as the I-55 Corridor, have skyrocketed. Average rental rates at the end of the fourth quarter in this area, according to one reporter from the publication, were $4.33, and minimal negotiation, large incentive packages, and a hotbed of investment opportunity drew investments from companies as prominent Home Depo as well as other bulk distribution companies. Home Depot Inc., alone increased its distribution presence to 1.5 million square feet at Windham Lakes Business Park in Romeoville after signing a lease for all of Windham Lakes VII, a 720,000 square foot spec building at 1070 Windham Parkway. (Dubriwny, 2004)

This renewed investor interest in Chicago is also due to the fact that such commercial, industrial real estate in the area are becoming perceived as foreign investor friendly, and relatively stable in comparison to other locations -- an excellent combination and a prescription for long-term expansion. (Dubriwny, 2004) Furthermore, although companies such as Home Depo, Inc. may have been much maligned in recent years, they are critical in drawing so-called anchor stores to large, enclosed malls and shopping districts. (Smith, 2005) Shoppers will go out of their way to go to such commercial locations, and the Chicago commercial market is becoming more open and attractive to such brand names. (Smith, 2005)