Category Archives: Retail

What does e-commerce want? Power, labor, world domination?

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e-commerce

Welcome to Episode 5 of JLL Chicago Industrial – Real Time, our Industrial Research podcast. In this episode:

  • What retailers want out of their e-commerce distribution network
  • The landlord perspective: The prevalence of build-to-suits to accommodate these facilities’ highly specialized technology and workforce amenity requirements
  • A deep dive into surrounding demographics to enhance retailers’ site selection process

Hosted by: Industrial market research experts George Cutro and Chad Buch

Featuring:

Listen to this 14-minute podcast with the player above or CLICK HERE.

Know someone who’d like to listen? Post to LinkedIn.… Read More

CTA’s L turns 125: Where to eat local and celebrate

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This week marks 125 years of service for the L, Chicago’s iconic elevated railway that began running in 1892. To mark the occasion, we chatted with Lauren Smith, Senior Analyst on JLL’s Public Institutions team, about her team’s retail leasing work with the Chicago Transit Authority and the best places to pick up a snack along the transit system.

JLL’s Public Institutions team has worked with the CTA since 2008, providing a wide range of real estate services, including managing the CTA’s retail leasing program. Recently, the CTA has seen a welcome uptick in interest from hyperlocal retailers that are making significant investments into their CTA spaces and adding variety to the retail program.

“The retail environment of the CTA is nothing like traditional neighborhood retail. Much of the customer base consist of commuters quickly passing through,” Smith says. “A lot of people are looking to grab a quick cup of coffee or a bite to eat on the way, though we are seeing more sit-down restaurants and cafés come into the program.”

Since the transit retail environment is so unique, with spaces ranging from smaller subway kiosks to larger street-level storefronts and some stations see more than 3 million annual riders (7 million at the Lake Red Line station), rents for CTA retail spaces have a wide range and typically diverge from the surrounding retail market.

Some of the latest delicious additions to CTA’s retail spaces:… Read More

Chicago’s top 5 shopping districts

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Chicago's top 5 shopping districts

“Whoever said money can’t buy happiness simply didn’t know where to go shopping.” –Bo Derek

Whoever said that simply didn’t know about prime urban corridors. These nationally recognized shopping districts, both existing and emerging, are propelling brick and mortar retail into the 21st century, featuring high-tech homages to the brands we love and those we’re just getting to know.

Chicago’s top 5 retail corridors cater to a broad audience of tourists and locals, some placing a premium on luxury while others prioritize value and convenience. Just in time for ICSC RECon, we chatted with top JLL Chicago Retail brokers about each corridor’s inner workings.… Read More

Retail therapy draws tenants to suburban Class A product

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Shopping on your lunch hour never gets old. Especially in the suburbs, where the live/work/play perks of urban density are in short supply. Suburban malls offer the opportunity to run errands during lunch, while also conveniently supporting a wide array of business amenities such as restaurants and event space for everyday meetings and larger corporate gatherings.

Across suburban Chicago, Class A office properties within a mile of a major mall are outperforming their competition in three out of four major suburban submarkets. While the area around Woodfield Mall appears to be flagging, JLL Research attributes that to Zurich’s relocation and expects occupancy to soon mirror the strength of its peers.

suburban ChicagoRead More

Everybody gets a roof deck: Fulton Market goes from Oprah to office mecca

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We’ve all seen it before. The meatpacking plant becomes the pioneering coffee shop becomes the hippest new neighborhood on the fringe. With 54 percent of the world’s population now living in urban areas and one million more moving to cities each week, the demand is there for these once-neglected submarkets to become cities’ greatest assets. For a prime local example, look no further than Fulton Market.

Fulton Market

Unlike the sleepy, 9-to-5 CBD and over-saturated River North and West Loop submarkets, Fulton Market offers off-the-beaten-path edge just minutes from downtown and is beginning to host an ever-widening array of uses. How did it all start? As one of Oprah’s “Favorite Things.”… Read More

Chicago 2025: Dynamic Expansion

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Chicago 2025

JLL’s Bruce Miller; GLP’s Paul Loosmann; Magellan’s David Carlins; JLL’s Dan Ryan, Ryan Severino and Meredith O’Connor; Oxford Capital Group’s John Rutledge; and The John Buck Company’s Dirk Degenaars at Chicago 2025: Dynamic Expansion.

Hundreds of industry leaders joined JLL Chicago last week to discuss Chicago 2025 and the city’s dynamic expansion. With 4,300 new hotel rooms planned, the lowest office vacancy in 16 years (10 percent), 4 million square feet of speculative industrial construction in the pipeline and 3 million square feet of office space headed to market, the next decade is going to be one for the books.

JLL Chief Economist Ryan Severino kicked things off with a broad-based market outlook, factoring in challenges of the past year from Brexit to an unexpected election result. Despite entering a 2017 filled with elevated policy uncertainty, the Chicago market’s universal truths are bolstering its investment appeal. Chicago’s still the third-largest metro economy in the U.S., with above average annual gross metro product growth and a diverse economy where no single industry comprises more than 20 percent of total employment. Going forward, our unusually high percentage of adults with undergraduate or graduate degrees will be of paramount importance in building on this economic momentum.

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JLL’s Chicago 2025 gallery wall, featuring the market’s hottest projects.

We’re definitely living in interesting times, agreed JLL International Director and panel moderator Bruce Miller. … Read More

Illinois is betting on proposed budget package

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Author: David Barnett, Research Analyst

Illinois casino

The Illinois General Assembly is back in session today to discuss Senate Bill 7, which would expand gambling in the state by permitting casinos to be built in Chicago, Danville, Rockford, Lake County, Cook County and Williamson County.

What’s the scope?

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Chicago 2025 market insights from JLL experts

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This week JLL Chicago will convene commercial real estate investors, clients and leading experts from throughout the city for Chicago 2025, our annual forecast. We sat down with JLL pros across asset classes ahead of the event for a preview of their sector-specific outlooks.

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10 Top Ten Lists – 2016

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With David Letterman off the air, JLL Chicago Research is here to fill your Top Ten void. Consider this your crash course for 2016, a year-in-review of Chicago’s best moments, focused on commercial real estate, workplace, market trends and pop culture.

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Retail Series Part 3: Getting to know Jim Harris

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Jim Harris has the opportunity to help shape a cultural icon. Senior General Manager, Retail at Navy Pier, he is part of a team that’s completely reimagining the 100-year-old historic landmark. “We don’t want to create a boardwalk atmosphere, we want to be a place where people come and interact with the landscape of the City of Chicago,” Jim says.

JLL won Navy Pier’s accounting contract in 2012, retail management in April 2015 and just won specialty leasing and brand activations. Jim came on for the first day of the management assignment and didn’t want to leave. What other property could make him the primary contact for seven boats and in close touch with Chicago’s top restauranteurs? It’s a different world than managing a mall.

Jim Harris

This holiday season: Navy Pier retailers do 75 percent of their sales between April and September, which means this time of year provides an opportunity for creative thinking. With highly attended events like upcoming “The Voice” auditions in January and the Chicago Flower & Garden Show in March, we’re giving the off-season a traffic boost ahead of a major retail transformation.… Read More

Retail Series Part 2: Touring Chicago’s flagships

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Author: Ryan Emerick

Chicago retail flagshipsIf you were to walk Michigan Avenue—Chicago’s Magnificent Mile—you would notice the unique stores that line the busy street. In comparison to most retail spaces, the stores on Michigan Avenue seem to be bigger, brighter and fancier, with lavish window displays, iconic architecture, cutting-edge technology and specialty restaurants.

“The flagship store is an entirely different experience compared to a mall or store in the suburbs,” says James Cook, JLL Americas Director of Research, Retail. The term “flagship” refers to the lead ship in a fleet. Often set in a prime urban location like the Magnificent Mile, a flagship store is considered to be the leader in its fleet of stores—a showcase of the very best the brand has to offer.

JLL Retail Research recently analyzed the features of 145 flagship stores across four U.S. markets: New York, Los Angeles, Chicago and San Francisco. They identified specific characteristics that set flagship stores apart from fleet stores and differences between flagship stores across retail categories: luxury and luxury lite, high to middle priced, low priced and discount and other.

I toured six Chicago flagship stores—Restoration Hardware, Uniqlo, Ralph Lauren, AT&T, Burberry and Under Armour—to determine if there were marked differences in flagship stores of different cities. More specifically, to find out: what sets the Chicago flagship stores apart from those in New York, Los Angeles and San Francisco?

Restoration Hardware – 1300 N. Dearborn Pkwy

Chicago retail flagships

As I climbed out of the taxi I thought the driver took me to the wrong address. Stately mansions lined the quiet, leafy street populated by schoolchildren and elderly couples with dogs. Compared to its neighbors the only conspicuous feature of the Restoration Hardware flagship store was the two valet attendants out front. Otherwise, the store could pass for a home.… Read More

Retail Series Part 1: Holiday shopping forecast

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Hold on to your wallets, this holiday shopping season is shaping up to be one for the books. JLL Research predicts consumers will spend more on their holiday gifts than ever before—a solid four percent hike in 2016 compared with 2015.

Black Friday boost

Holiday shopping

Strolling carolers at Rosedale Center

For a boots-on-the-ground perspective on Black Friday, the season’s first official shopping frenzy, we checked in with JLL’s Scott Michaelis, general manager of Rosedale Center in the Twin Cities. More than 80 retailers opted to open at 6pm on Thanksgiving, he tells us, and Thursday traffic was up 30-plus percent. Sales from key retailers surveyed were slightly up compared with 2015 with self-gifting, small gifts and sale apparel leading the way.

“We see local factors ripe for successful sales with expected gains of three to four percent over 2015. The local economy is good and unemployment rates are low, both indicators of a strong season,” Scott says.… Read More

Chicago Tech Series Part 1: Behind the numbers

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JLL Research’s recent technology office outlook revealed incredible opportunity in the Chicago tech sector and we’re here to look behind the numbers.

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JLL Celebrates Earth Day 2016

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The built environment accounts for about 40 percent of global energy consumption and around a third of the world’s carbon emissions, which means the real estate industry can play a significant role in reducing climate change impact.

In the last year alone, JLL signed the Caring for Climate declaration, pledged emissions reductions to the NAZCA and attended COP21 in Paris to show our support for a strong international climate agreement. To continue this momentum, the firm celebrated Earth Day last week and JLLers from around the world took part in related activities.

A video posted by JLL (@jllnews) on


In Chicago, sustainability is an integral part of JLL’s corporate headquarters renovation at Aon Center. A prime example is our LED lighting and sensor control system that automatically dims the lights for a 40 percent reduction in energy, while also providing plenty of light for work. Lights come on when employees arrive and dim when they go home. Whether dark or light, we’re always thinking green.

Check out some of our #JLLEarthDay social media highlights!… Read More

Our new class of Retail associates

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With ICSC Chicago Deal Making in the rearview mirror, JLL’s starting lineup of Retail associates sat down with us to talk trends, submarkets and their favorite places for retail therapy.

Zac Lewinski

Lewinski Zac

What part of the city do you live in and where do you like to shop?

I live in the western suburbs in Medinah. If I’m home, you’ll find me shopping at Oakbrook Center. When I’m downtown, I like to explore the stores on Michigan Avenue and State Street. If you’re looking to stay on-trend at a new, upstart retailer in Chicago, check out Shinola in Bucktown for watches, bicycles and leather goods.

What’s Chicago’s most up-and-coming retail submarket?

The West Loop. Expect to see larger national tenants testing the waters in the area, which has become a tech office mecca and is beginning to establish itself as a retail presence in Chicago. Everyone is swarming around the neighborhood, but the floodgates will really open once a big name brand takes that first step.

What’s the biggest retail trend nobody is talking about?

The pop-up shop. It’s an innovative way to use empty space and carries a low financial commitment for retailers looking to short-term test the success of particular locations. Canadian retailer Kit and Ace is trying one in the West Loop for one year to evaluate its prospects in the market.

What retailers will we see growing in Chicago in 2016?

Fast casual dining options will continue to dominate as a growth market in Chicago retail, with the biggest need in the West Loop. South African chain Nando’s has been a prime mover in this space with three locations already open around Chicago, and a unique example of an out-of-town retailer entering the city in a young market like the West Loop.

What’s your favorite retailer space in Chicago and why?

The Nike flagship at 669 N. Michigan Ave. Like other successful big brand flagships that “just do it,” the space and customer experience do a great job marketing the brand. The size and scale of flagships may not correlate to comparable in-store sales, but the positive effects on brand identity are immeasurable and difficult to achieve via online channels alone.… Read More

A day in the life: JLL’s Chicago Markets summer interns tour AMC Theatres

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Author: Jeanette Bucio-Merlos, Summer Intern with Midwest Marketing

Earlier this week JLL’s Chicago Markets summer interns got a behind the screens look at one of JLL’s Multi-site programs, the AMC movie theater at 600 N. Michigan, led by our Project and Development Services (PDS) team.

AMC_1

Emily Brown and JLL’s Chicago Markets summer interns testing out the new movie theater seats.

Emily Brown, PDS Project Manager at JLL, started off the tour by briefly explaining the three parts of PDS: multi-site (like the AMC movie theater project), tenant improvement (hotels, for example) and development. A typical workweek for her includes traveling to visit sites, fielding conference calls and navigating pay-apps and change orders.… Read More

The Chicago Athletic Association’s Transformation

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Shrouded in mystery since its completion in 1893 for the World’s Columbian Exposition, the Chicago Athletic Association (CAA), 12 S. Michigan Ave., was an exclusive private club until it closed in 2007. It sat dormant until 2012, when new ownership began an artful and iconic renovation process, restoring the celebrated structure to its original grandeur and reopening as a four-star, lifestyle boutique hotel.CAAStaircaseRead More

JLL Chicago celebrates National Donut Day

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JLL Chicago went big for National Donut Day, a holiday we’re proud to say originated in the Windy City.

Donut Day1

JLL Chicago organized a donut tasting from nine shops: good old Dunkin’ Donuts, Do-Rite Donuts, West Town Bakery & Diner, Spunky Dunkers, Oak Park Bakery, Sensational Bites, Glazed & Infused, Dinkel’s Bakery and Kirsten’s Danish Bakery.

Believe it or not, the day of donut decadence dates back to 1938, when it was kicked off by the Chicago branch of the Salvation Army.… Read More

NAIOP panel reveals e-commerce, industrial trends impacting Chicago

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With e-commerce booming, industrial is adapting to new distribution challenges daily. The Chicago market, centrally located and gaining favor among global capital, finds itself at the convergence of those changes.

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JLL’s Kris Bjorson

JLL’s Kris Bjorson, International Director and Head of Retail/E-Commerce Distribution, spoke to a packed auditorium at NAIOP’s All Star Industrial Panel in Rosemont last Thursday.

The panel, which also included LaSalle Investment Management Managing Director Paul White and Panattoni Development Partner John Pagliari, broke down four key market trends affecting global industrial in the Windy City.

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LIVE BLOG: JLL CEO Colin Dyer at Executives’ Club of Chicago Global Leaders Luncheon

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GLL1014_CapitalFlows (5)

JLL CEO Colin Dyer (second from left) is one of three panelists at today’s Global Leaders Luncheon hosted by the Executives’ Club of Chicago. The topic is “Capital Flows and Global Footprint” and the other panelists are David Sayer (second from right), Global Head of Banking for KPMG, and Hung Tran (far right), Executive Managing Director of the Institute of International Finance. The panel is… Read More