CHICAGO RETAIL OVERVIEW August 24, 2016
2 | CHICAGO RETAIL OVERVIEW
TABLE OF CONTENTS CHICAGO MARKET OVERVIEW
05
Why Chicago
TARGET MARKETS
11
Target Markets
CAPITAL MARKETS
15 18 21
Deal Size Comparable Projects Chicago Retail Overview
CURRENT LEASING MARKET
23
Current Chicago Leasing Market
APPENDIX
27 28 30
Chicago Retail Corridor Chicago Retail Statistics Chicago Maps
CHICAGO RETAIL OVERVIEW | 3
CHICAGO MARKET OVERVIEW
4 | CHICAGO RETAIL OVERVIEW
WHY CHICAGO CHICAGO IS A PREMIER GLOBAL CITY Based upon a formula measuring business activity, information exchange, human capital, cultural experience, and political engagement: Chicago is ranked as the number 7 metro area in the world. (behind only New York, London, Paris, Tokyo, Hong Kong, Los Angeles) Source: AT Kearny Global Cities Report
#7 METRO CHICAGO IS RANKED AS THE #7 METRO AREA IN THE WORLD
CHICAGO IS A GROWING MARKET 17
Current Chicago Metro Area population:
9,581,253 CHICAGO IS RANKED 17TH IN THE WORLD for future potential which is a dynamic indicator based upon rate of change in personal wellbeing, economics, innovation, and governance. Scores ahead of Los Angeles, Tokyo, Paris, Dubai.
(grown by 482,942 since 2000)
Source: AT Kearny Global Cities Report
Source: Nielsen
Context Populations: (Atlanta 463,878 | Minneapolis 410,939 | Miami 441,003) Chicago is projected to add 98,177 more by 2021 Context Populations: (Green Bay 105,207 | Boulder 107,349)
CHICAGO RETAIL OVERVIEW | 5
300M
SQUARE FEET of office space Source: CBRE Research
1B
SQUARE FEET of industrial space Source: CBRE Research
CHICAGO IS A RESILIENT, SUSTAINABLE METRO AREA Chicago is ranked as the most resilient metro area in the United States (4th in the world) based upon its minimal risk due to natural hazards and climate shifts. The metro area features over 215 square miles of parks and forest preserves (including The Morton Arboretum). The city of Chicago has over 5.5 million SF of green roofs. Source: Grosvenor 6 | CHICAGO RETAIL OVERVIEW
CHICAGO HAS A LARGE, DIVERSE ECONOMY
GROSS METRO PRODUCT OF $641 BILLION
4.6M
WORKERS reside in Chicago Metro Area
Chicago ranks higher than all but 19 nations Sweden - $473B Switzerland - $482B Belgium - $494B Austria - $404B Norway - $356B
Source: Nielsen
5.1M
PEOPLE WORK in Chicago Metro Area Source: Nielsen
Source: CIA Factbook // USmayors
15% 131.7M SQUARE FEET of retail space
GROWTH in retail net rental rates since Q1 2009 Source: CBRE Research
Source: CBRE Research
FAST CHICAGO FACTS • HQ for 30 Fortune 500 companies • Chicago has recovered from recession • Retail SF has grown since pre-recession peak economy and vacancy is below pre-recession peak • Metro area employment reached pre-recession peak levels in March 2015 • CBD employment levels are 7.1% higher than pre-recession peak levels by March 2015 Source: IDES CHICAGO RETAIL OVERVIEW | 7
CHICAGO MSA RETAIL SALES VOLUMES
CHICAGO RETAIL STATS
$131,571,841,657 TOTAL ANNUAL RETAIL SALES VOLUME 2015
131,700,865 TOTAL SF OF RETAIL MARKET Q2 2016
25 REGIONAL MALLS
9.0% OVERALL CHICAGO MSA VACANCY RATE Q2 2016
8 | CHICAGO RETAIL OVERVIEW
CHICAGO RETAIL OVERVIEW | 9
TARGET MARKETS
10 | CHICAGO RETAIL OVERVIEW
TARGET MARKETS We identified key trade areas that met the following criteria: • Local Average household income over $100,000 • 1 mile employment over 10,000 • 1 mile retail sales over $500 million Included in the trade areas are Lake Zurich and Western Springs which did not meet the criteria but the client has locations in.
CHICAGO RETAIL OVERVIEW | 11
TRADE AREA KEY DATA Pop. 2016
Pop. Growth 2021
Average HH Income
HH Earning Over $100K
Retail Expenditure Potential
Expenditure Growth To 2021
Retail Sales
Gurnee
119,973
913
$97,163
15,498
$2,165,052,882
6.38%
$3,457,347,467
Vernon Hills
123,689
529
$145,691
22,473
$2,511,912,482
6.24%
$4,774,076,839
Lake Zurich
80,712
501
$146,693
15,680
$1,708,515,032
6.27%
$3,651,237,088
Deer Park
185,337
2,155
$120,432
31,109
$3,711,382,273
6.68%
$4,441,939,891
Northbrook / Deerfield
147,105
344
$156,816
29,110
$3,138,885,586
5.60%
$5,350,712,754
Mount Prospect
334,052
3,792
$91,542
41,797
$6,242,740,264
7.25%
$4,794,034,671
Schaumburg / Woodfield
273,313
2,092
$95,630
37,405
$5,261,222,623
6.88%
$5,957,893,513
Elgin / South Elgin
126,512
2,200
$97,556
15,313
$2,125,792,436
8.76%
$1,057,182,268
Geneva / Batavia
104,533
1,527
$125,848
17,855
$2,063,691,108
7.49%
$1,918,438,191
Naperville / Aurora
280,061
9,444
$113,283
39,555
$4,965,015,122
8.90%
$5,045,545,608
Wheaton
225,162
2,701
$112,657
35,886
$4,521,556,319
6.84%
$3,935,235,710
Bolingbrook
212,880
1,055
$103,956
30,525
$4,062,951,357
6.58%
$2,657,103,581
Downers Grove / Darien
250,444
1,194
$108,486
39,100
$5,017,534,976
6.57%
$5,008,877,827
Lombard / Downers Grove
261,900
2,008
$112,717
40,877
$5,226,972,554
6.63%
$7,069,834,967
Oak Brook
292,990
2,084
$108,584
41,978
$5,560,282,157
6.60%
$7,644,462,303
Skokie / Old Orchard
379,005
3,511
$112,084
54,353
$7,116,911,470
6.65%
$6,773,433,992
Norridge
705,358
1,320
$75,720
59,952
$10,924,053,349
6.30%
$7,911,103,010
Crestwood
294,252
407
$75,597
28,261
$4,989,458,708
6.35%
$3,591,030,988
South Loop
333,724
17,773
$100,993
57,480
$7,027,212,208
12.97%
$11,315,570,900
Lincoln Park
492,783
15,722
$112,308
102,263
$11,194,075,274
10.45%
$12,930,501,147
Countryside
236,781
2,381
$107,562
32,563
$4,482,283,991
6.71%
$3,911,389,931
Evergreen Park
621,577
-4,693
$58,849
36,311
$8,431,333,807
5.31%
$5,041,636,572
Orland Square
170,149
2,802
$102,098
25,652
$3,364,011,605
7.57%
$3,351,640,042
Countryside
236,781
2,381
$107,562
32,563
$4,482,283,991
6.71%
$3,911,389,931
Joliet
193,393
3,980
$84,949
19,502
$3,177,140,292
7.79%
$2,735,289,240
Shorewood
136,143
3,014
$88,143
14,976
$2,297,032,864
7.78%
$2,176,922,316
Countryside
236,781
2,381
$107,562
32,563
$4,482,283,991
6.71%
$3,911,389,931
North Riverside
625,586
-129
$72,583
46,774
$9,044,167,534
6.19%
$5,226,663,146
Highland / Schereville
186,812
-58
$76,115
17,859
$3,288,930,711
5.82%
$4,021,039,602
New Lenox /Frankfort
106,475
2,167
$114,844
16,940
$2,036,666,283
7.24%
$1,556,172,039
Merrillville / Hobart
93,345
1,976
$66,619
6,855
$1,533,827,455
8.04%
$3,272,657,738
Skokie / Niles
696,038
3,449
$85,895
76,298
$11,809,618,708
6.69%
$8,297,804,337
Lincolnwood / Evanston
761,937
5,087
$84,612
87,234
$13,350,538,676
7.38%
$8,848,464,790
Name
12 | CHICAGO RETAIL OVERVIEW
CHICAGO RETAIL OVERVIEW | 13
CAPITAL MARKETS
14 | CHICAGO RETAIL OVERVIEW
DEAL SIZE DEAL SIZE HAS A MATERIAL IMPACT ON PRICING Larger deal sizes are preferred in primary markets like Chicago resulting in yield compression. In smaller market, the reverse is occurring.
Sub-Type Community Center Lifestyle Center Neighborhood Center Power Center Power Center w/ Grocer Regional Mall Street Retail Strip/In-Line Center
$20M-$60M 7.08% 7.53% 6.42% 7.40% 7.65% 10.48% 5.42% 6.70%
$60M-$100M 6.09% 7.26% 5.69% 6.76% 6.66% 7.41% 4.99% 5.43%
>$100M 6.31% 6.42% 5.42% 6.09% 5.66% 6.84% 6.04% 4.37%
CORE RETAIL PROPERTIES Capitalization Rates by Market
CHICAGO RETAIL OVERVIEW | 15
WHERE ARE THE OPPORTUNITIES TODAY? URBAN RETAIL
FRINGE PRIMARY & SECONDARY MARKETS
• Look beyond high street retail
• Increased with yields with recent price reductions
• Many urban markets are underserved by retailers
• Biggest disconnect today between buyers and sellers
• Bigger boxes have scarcity value in urban locations • Future densification is a benefit RETAIL CENTERS WHERE NOT ALL BOXES ARE CHECKED
• Traditional buyers are absent from the market (VEREIT, RCA, Inland, etc.) • Buy the best center in the trade area • Get enough of a return premium for the lower liquidity
• A good location with solid demographics is a must-have • Upgrading the center with new and better merchants • Additional land • One vacant big box
RISKS IN INVESTING IN RETAIL CENTERS GROCERY COMPETITION INCREASES
WEAK TENANT SALES
• Watch for multiple brands of Safeway/Albertsons in a trade area where Cerberus could close one
• Amazon has lowered profitability margins for most retailers
• Flood of new grocers has dramatically increased competitive environment (increased margin pressure and greater specialization)
• Retailers increased capital expenditures and cost of ecommerce impacting their margins
SHADOW OR FUTURE VACANCIES FROM DEPARTMENT STORES AND OTHER ANNOUNCED CLOSURES • Millions of square feet and many stores are at risk • Large capital expenditures to demise and retenant the boxes
16 | CHICAGO RETAIL OVERVIEW
• Stores with weak sales at risk of being closed
CHICAGO REGION - RETAIL MARKET STATISTICS
2014
2015
2016 1H
130,863,416
131,462,716
131,700,865
9.5%
9.3%
9.0%
130,683,215
130,863,416
131,462,716
-631,465
630,884
514,000
Class A
5.25 - 6.50%
5.0 - 6.25%
5.0 - 6.25%
Class B
7.25 - 8.25%
7.0 - 7.75%
7.5 - 8.25%
268
315
177
13,255,570
17,057,941
12,527,497
$2.57B
$3.61B
$2.49B
$194
$212
$199
Inventory (SF) Vacancy Prior Year Inventory (SF) Absorption
Next 12 mos
Cap Rates
No. of Transactions Total SF Sold Total Sales Volume Average Price/SF
Predictions 1. Nominal pricing change will occur for the best quality “A” assets. Institutional and foreign capital will continue to seek out perceived “bullet-proof” deals with long term, predictable cash flows. Such opportunities continue to be in limited supply. 2. Pricing on suburban “B” quality and below centers will continue to decline slightly as market fundamentals remain stagnant. In urban locations, pricing will be flat as improving market fundamentals will be offset by real estate tax increases. Potential interest rate increases and the diminished supply of CMBS debt will increase buyers’ cost of capital. 3. Rental rate growth in the city of Chicago will be hampered by anticipated increases in real estate taxes. CHICAGO MSA GROCERY MARKET SHARE GROCER
Q2'16 # of Stores
1H 2016
2013
1998 3.0%
Aldi's
72
6.5%
6.0%
Costco
18
4.2%
4.0%
Dominick's
10.0%
Food 4 Less
14
2.5%
3.0%
Jewel
165
27.3%
32.0%
Mariano's
38
10.2%
3.0%
Meijer
19
2.9%
3.0%
Walmart
75
11.5%
10.0%
Target
67
3.6%
4.0%
Trader Joe's
21
3.0%
2.0%
36.0% 43.0%
Ultra Foods
11
2.3%
3.0%
Whole Foods
26
7.4%
4.0%
Independents (a)
100
15.1%
14.0%
12.0%
Other (b)
28
3.5%
2.0%
6.0%
654
100.0%
100.0%
100.0%
(a) Butera, Caputo’s, Cermak, Fairplay Foods, Fresh Farms, Leamington, Pete’s, Save-A-Lot, Tony’s, Treasure Island (b) 2015: Fresh Market, Fresh Thyme, H Mart, Heinens, Sunset Foods, Woodmans CHICAGO RETAIL OVERVIEW | 17
COMPARABLE PROJECTS HERITAGE PLAZA ON MARKET 720 W. Army Trail Rd. Carol Stream, IL 128,870 SF Jewel/Osco, Charter Fitness On Market
DANADA SQUARE EAST ON MARKET 91 Danada Square East Wheaton, IL 202,036 SF Whole Foods, Petco, Charter Fitness, Sierra Trading Post On Market
18 | CHICAGO RETAIL OVERVIEW
MAIN STREET PROMENADE IN NEGOTIATION NEC Van Buren Ave & Main St. Naperville, IL 181,573 SF J Jill, J. Crew, Ann Taylor, LOFT, Soft Surroundings, Sur La Table, Anthorpologie Cap Rate: ± 6.5%
NORTHSHORE 770 UNDER CONTRACT 784 Skokie Blvd Northbrook, IL 101,500 SF Mariano’s, Fuddruckers, Noodles & Co, Chipotle Under Contract
3030 BROADWAY UNDER CONTRACT 3030 N. Broadway Chicago, IL 131,618 SF Mariano’s, X-Sport Fitness, Starbucks $80,000,000 Cap Rate: ± 5.75%
CHICAGO RETAIL OVERVIEW | 19
WASHINGTON PARK PLAZA JULY 2016 17800 S. Halsted St. Homewood, IL 234,674 SF TJ Maxx, Best Buy, Jo-Ann Fabric, Petco, Party City $30,750,000 Cap Rate: 7.74%
BURBANK STATION DECEMBER 2015 78th & Cicero Burbank, IL 303,566 SF Food 4 Less, HomeGoods, Ashley Furniture, PetSmart $52,000,000 Cap Rate: 6.8%
SHOPPES AT WINDMILL PLACE DECEMBER 2015 21 S. Randall Rd. Batavia, IL 122,146 SF Jewel/Osco $24,500,000 Cap Rate: 6.5%
20 | CHICAGO RETAIL OVERVIEW
La
ke
M
CHICAGO RETAIL OVERVIEW
ich
iga n
Oak hore eS Lak
Walton
Walton
Delaware Pl.
Dri
Locust
ve
Chestnut
Chestnut
Pearson
Rush
Michigan
State
Wabash
Clark
Dearborn
Wells
LaSalle
Franklin
Orleans
Hudson
Sedgwick
Larrabee
Kingsbury
Superior
Superior Huron
Fairbanks
Chicago
Chicago
Erie
Erie
RIVER NORTH River
Ontario
Ch
North NORTH MICHMichigan IGAN AVENUE
Ohio Grand
North
ica
Illinois
go
Ogden Slip
Ri
Hubbard
ve r
M
Kinzie
au ilw
DOWNTOWN CHICAGO RETAIL STATISTICS YTD 2016
R iver
e
ke
Chi cag o
Wacker
East Loop
Lake
Randolph Randolph Street Station
Washington
CENTRAL Central Loop LOOP
Millennium Park
Monroe
EAST LOOP
Lake Shore Drive
Franklin
Madison
Wacker
WEST LOOP Canal
Jefferson
DesPlaines
Green
Halsted
Peoria
Sangamon
Morgan
94
West Loop
Michigan
Ogilvie Station
90
Clinton
Carpenter
May
Aberdeen
Racine
Elizabeth
FULTON MARKET/ Fulton Market/ Far West Loop FAR WEST LOOP
Adams Union Station
Jackson
Van Buren Street Station
Congress
41 Grant Park
LaSalle
290
Financial
Van Buren
CTA Rail Lines & Stops
LaSalle St Station
N
Metra Commuter Rail
Harrison Chicago
River
RIVER NORTH
Balbo
EAST LOOP
Polk
Sales Statistics
Leasing Statistics
Leasing Statistics
Sales Statistics
TOTAL
# OF
VACANCY
AVERAGE
AVERAGE
TOTAL
# OF
VACANCY
AVERAGE
AVERAGE
SF
PROPS
RATE
CAP RATE
PRICE PSF
SF
PROPS
RATE
CAP RATE
PRICE PSF
2,610,848
184
2.60%
5.20%
$432
2,334,178
26
7.30%
5.90%
$612
NORTH MICHIGAN AVE
FULTON MARKET/RIVER WEST Sales Statistics
Leasing Statistics
Sales Statistics
Leasing Statistics
TOTAL
# OF
VACANCY
AVERAGE
AVERAGE
TOTAL
# OF
VACANCY
AVERAGE
AVERAGE
SF
PROPS
RATE
CAP RATE
PRICE PSF
SF
PROPS
RATE
CAP RATE
PRICE PSF
2,554,140
212
8.70%
4.70%
$491
4,784,735
114
8.40%
4.20%
$1,560
WEST LOOP Leasing Statistics
CENTRAL LOOP Sales Statistics
Leasing Statistics
Sales Statistics
TOTAL
# OF
VACANCY
AVERAGE
AVERAGE
TOTAL
# OF
VACANCY
AVERAGE
AVERAGE
SF
PROPS
RATE
CAP RATE
PRICE PSF
SF
PROPS
RATE
CAP RATE
PRICE PSF
1,233,211
61
4.30%
5.00%
$446
623,661
34
21.10%
5.70%
$845
CHICAGO RETAIL OVERVIEW | 21
CURRENT LEASING MARKET
22 | CHICAGO RETAIL OVERVIEW
CURRENT CHICAGO LEASING MARKET CHICAGO AREA RETAIL STATISTICS YTD 2016 The following are some observations and insights on the graphs/stats on the following pages. OVERVIEW OF THE STATS • Rents have been on a steady increase for the past 5 years • Vacancy rates have remained relatively stable • Anchor rents and vacancies have shown moderate fluctuation annually but over the long run have remained about the same • The Five F’s continue to drive anchor leasing (Fashion, Furniture, Fitness, Food & Fun) INSIGHTS INTO THE MARKET • Although vacancy rates have remained flat, the market has become significantly more polarized • Tenants have been closing stores in underperforming centers and underperforming submarkets at an increasing rate
• Demand for space in those centers and submarkets is at an all-time low while supply of available space in those locations is at an alltime high • At the same time the number of major chains going out of business (which leads to vacancies in A locations) has declined • Therefore, for the well anchored centers in the strongest markets, supply of available space at these centers is at an all-time low while demand remains very high • Since new construction has been very limited, these A centers are experiencing tremendous rent growth • In addition to the phenomenal rent growth in A+ locations, this unmet demand is leading to opportunities for the A-/B+ locations to satisfy the needs of tenants and leading to opportunities for major rent growth in those properties as well
RETAIL ANCHOR RENTS $12.00 Avg Asking Rent Avg Rent Comp $10.00
$8.00
$6.00
$4.00
$2.00
$0 2010
2011
2012
2013
2014
2015
2016
CHICAGO RETAIL OVERVIEW | 23
$0
24 | CHICAGO RETAIL OVERVIEW
2Q2016
1Q2016 2Q2016
1Q2016
4Q2015
3Q2015
2Q2015
2012
4Q2015
3Q2015
2Q2015
1Q2015
4Q2014
3Q2014
2011
1Q2015
4Q2014
3Q2014
2Q2014
1Q2014
4Q2013
3Q2013
2010
2Q2014
1Q2014
4Q2013
3Q2013
2Q2013
1Q2013
2009
2Q2013
1Q2013
4Q2012
2016
4Q2012
0
3Q2012
50
2Q2012
4,000,000
3Q2012
6,000,000
2Q2012
150
1Q2012
8,000,000
1Q2012
4Q2011
3Q2011
2Q2011
1Q2011
200
4Q2011
3Q2011
2Q2011
1Q2011
4Q2010
2,000,000
4Q2010
10,000,000
3Q2010
2Q2010
12,000,000
3Q2010
2Q2010
1Q2001
SF Available
1Q2001
4Q2009
3Q2009
2015
4Q2009
3Q2009
2Q2009
1Q2009
4Q2008
2014
2Q2009
1Q2009
4Q2008
3Q2008
2Q2008
2013
3Q2008
2Q2008
1Q2008
4Q2007
3Q2007
2012
1Q2008
4Q2007
3Q2007
2Q2007
1Q2007
4Q2006
2011
2Q2007
1Q2007
4Q2006
3Q2006
2Q2006
1Q2006 2010
3Q2006
2Q2006
4Q2005
3Q2005
2Q2005 2009
1Q2006
4Q2005
3Q2005
2Q2005
1Q2005
0
1Q2005
ANCHOR SPACE AVAILABLE RETAIL ANCHOR ABSORPTION
Spaces Available 250 6 MSF On Market
5 MSF Absorbed
4 MSF
100 3 MSF
2 MSF
1 MSF
0 2013 2014
CHICAGO AREA HISTORICAL VACANCY RATES 0.14 Vacancy
0.12
0.10
0.08
0.06
0.04
0.02
CHICAGO AREA HISTORICAL ASKING RATES
$25.00 Asking Rents
$20.00
$15.00
$10.00
$5.00 2015 2016
ACTIVE TENANT CATEGORIES FITNESS
FASHION
FURNITURE
FOOD
FUN
®
SUBMARKET ANALYSIS STRONGEST Aurora/Naperville Highland/Schererville Lincoln Park Lombard/Downers Grove Oak Brook Orland Park Schaumburg/Woodfield Skokie/Old Orchard South Loop
HEALTHY Bolingbrook Countryside/Hodgkins Crestwood Deer Park Downers Grove/Darien/Woodridge Elgin/South Elgin Evergreen Park Geneva/Batavia Gurnee Joliet Lake Zurich Lincolnwood/Evanston Merrillville/Hobart Mount Prospect New Lenox/Frankfort Norridge North Riverside Northbrook/Deerfield Shorewood Skokie/Niles Vernon Hills Wheaton
CAUTIONARY Algonquin/Lake in the Hills Arlington Heights Chicago Ridge Cicero Crystal Lake Ford City Homewood Lombard/Villa Park McHenry Melrose Park/Northlake Morton Grove/Niles Niles/Golf Mill Oswego Palatine Plainfield Round Lake Beach Streamwood/Schaumburg Tinley Park
WEAKEST Bloomingdale Calumet City/Lansing Matteson St. Charles West Dundee/Carpentersville
CHICAGO RETAIL OVERVIEW | 25
APPENDIX
26 | CHICAGO RETAIL OVERVIEW
CHICAGO RETAIL CORRIDOR CHICAGO RETAIL CORRIDOR COMPARISON Corridor
Population Households
Avg. HH Income
Avg. Age
Employment
Avg. Condo Price
Avg. Single Family Price
FDIC Deposits
Bucktown
63,076
29,995
$106,118
34.2
40,135
$538,177
$723,435
2,633
Fulton Market
49,203
27,864
$119,911
35.8
33,508
$384,746
$359,600
4,839
Lake View
81,713
42,722
$113,089
34.5
55,929
$553,667
$717,667
2,956
Gold Coast
89,772
57,973
$119,591
41.8
56,997
$497,357
$734,125
15,407
Lincoln Park
71,743
39,063
$115,959
36
46,550
$555,083
$1,092,425
3,571
1,203,122
527,783
$84,094
36.6
641,013
Northside
$400,676 (Avg. Home Value, Condo & Single Family)
CHICAGO RETAIL OVERVIEW | 27
CHICAGO RETAIL STATISTICS
M A R K E T V I E W CHICAGO RETAIL
Figure 4: Chicago Retail Statistics
Submarket
# of Properties
Gross Building (Sq. Ft.)
Vacant Area (Sq. Ft.)
Vacancy Rate (%)
Average Asking Lease Range ($/Sq.Ft./Yr) LOW
HIGH
Far N.W. Suburbs
86
14,235,632
1,458,130
10.2
16.85
19.75
N.W. Suburbs
100
16,818,948
1,773,529
10.5
17.53
19.87
Far North Suburbs
39
6,956,028
762,787
11.0
15.51
16.29
North Suburbs
58
10,348,366
531,521
5.1
17.69
22.06
Far West Suburbs
138
22,002,995
2,587,547
11.8
15.22
16.78
West Suburbs
42
8,236,743
498,459
6.1
18.86
23.92
City North
64
9,097,936
322,744
3.5
20.96
23.98
City South
33
5,564,785
448,655
8.1
21.76
25.46
Far S.W. Suburbs
59
10,460,722
556,736
5.3
18.29
20.28
S.W. Suburbs
63
9,799,114
661,604
6.8
15.17
17.38
South Suburbs
45
6,766,943
1,153,369
17.0
15.62
18.90
Kane County
59
11,412,653
1,038,307
9.1
13.34
16.55
Total
786
131,700,865
11,793,388
9.0
17.09
19.75
Lake Zurich Source: CBRE Research, Q2 2016. Far Northwest Suburbs
| Submarket 1
Highland Park Far North Suburbs | Submarket 3 Q2 2016 CBRE Research
28 | CHICAGO RETAIL OVERVIEW
Downers Grove Far West Suburbs | Submarket 5 Western Springs West Suburbs | Submarket 6 © 2016 CBRE, Inc. |
4
CHICAGO RETAIL OVERVIEW | 29
CHICAGO MAPS CHICAGO METRO AREA MEDIAN HOUSEHOLD INCOME
30 | CHICAGO RETAIL OVERVIEW
CHICAGO METRO AREA POPULATION GROWTH
CHICAGO RETAIL OVERVIEW | 31
Municipal Chicago Overview Map MUNICIPAL CHICAGO OVERVIEW MAP Population Growth 2016-2021
Damen (2000 W)
Population Loss
Ashland (1600 W)
Western (2400 W)
Kedzie (3200 W)
California (2800 W)
Pulaski (4000 W)
Cicero (4800 W)
Central (5600 W)
Laramie (5200 W)
Austin (6000 W)
Oak Park (6800 W)
OHARE
90
Narragansett (6400 W)
Harlem (7200 W)
Cumberland (8400 W)
EDISON PARK
Up To 2% 2% To 4%
ROGERS Touhy (7200 N) PARK
4% To 6% 6% To 8%
Pratt (6800 N)
WEST RIDGE
Devon (6400 N) FOREST Peterson (6000 N) GLEN EDGEWATER NORWOOD NORTH Bryn Mawr (5600 N) PARK PARK 94 JEFFERSON Foster (5200 N) LINCOLN PARK SQUARE Lawrence (4800 N) ALBANY UPTOWN PARK Montrose (4400 N) IRVING PORTAGE Irving Park (4000 N) PARK NORTH PARK LAKE VIEW Addison (3600 N) CENTER DUNNING Belmont (3200 N) AVONDALE Diversey (2800 N) 94 90 BELMONT MONTCLARE HERMOSA LINCOLN Fullerton (2400 N) CRAGIN LOGAN PARK Armitage (2000 N) SQUARE North (1600 N) NEAR Division (1200 N) NORTH HUMBOLDT WEST SIDE PARK TOWN Chicago (800 N) AUSTIN WEST EAST GARFIELD GARFIELD NEAR WEST PARK PARK SIDE LOOP 290 Congress (500 S) Roosevelt (1200 S) NORTH 94
LAWNDALE
LOWER WEST
90
SOUTH LAWNDALE
55
GARFIELD RIDGE
WEST ELSDON
PARK
94 90
WEST ENGLEWOOD ENGLEWOOD
Hyde Park (5100 S)
HYDE PARK
Garfield (5500 S) 59th (5900 S)
WOODLAWN
63rd (6300 S) 67th (6700 S)
71st (7100 S)
GREATER GRAND CROSSING
AUBURN GRESHAM
ASHBURN
SOUTH SHORE
90
AVALON PARK
94
SOUTH CHICAGO
CHATHAM
87th (8700 S)
WASHINGTON HEIGHTS 95th (9500 S)
BEVERLY MOUNT GREENWOOD
CALUMET HEIGHTS
BURNSIDE
ROSELAND
103rd (10300 S)
111th (11100 S)
47th (4700 S) KENWOOD
WASHINGTON
GAGE PARK
WEST LAWN
75th (7500 S)
GRAND 43rd (4300 S) BOULEVARD
FULLER PARK
NEW CITY
CHICAGO LAWN
CLEARING
Cermak (2200 S) 26th (2600 S)
ARMOUR 31st (3100 S) SQUARE MCKINLEY DOUGLAS 35th (3500 S) PARK BRIDGEPORT OAKLAND Pershing (3900 S)
BRIGHTON PARK ARCHER HEIGHTS
Over 10%
NEAR SOUTH
SIDE
SIDE
8% To 10%
EAST SIDE
PULLMAN
57 MORGAN PARK
SOUTH DEERING 94
115th (11500 S) 119th (11900 S)
WEST PULLMAN RIVERDALE HEGEWISCH
32 | CHICAGO RETAIL OVERVIEW
CHICAGO METRO AREA RETAIL EMPLOYMENT GROWTH 173
Antioch
94
Zion
Old Mill Creek 12
Wadsworth
Retail Employment Growth 2008 (pre recession peak) -2014
Beach Park
Lake Villa
Loss or No Growth
Venetian Village
Fox Lake
Up To 5% Growth
Grand
132
Wonder Lake
134
5 To 10% Growth
Washington
83
Park City
Belvidere
10% To 25% Growth
Grayslake
Waukegan
Gurnee
45
Round Lake Beach
Round Lake
120
120
McHenry
Chicago Metro Area Retail Employment Growth
Winthrop Harbor
Rosecrans
173
Greater Than 25% Growth
Bull Valley
Bull Valley
60
31
McHenry County
Lake County Rockland
Libertyville
Wauconda
Island Lake
176
Mundelein
Mettawa
Hawthorn Woods
Lakewood Cary
Lake Zurich
22
Lake Zurich
Half Day
nq
Barrington
68
uin
Inverness
Carpentersville West Dundee
53 Arlington
Lak e
Wise Elgin
rk
Torrence
394
Glenwood
1
Chicago Heights
Cottage Grove
Flossmoor Olympia Fields
Halsted
30
Lynwood
Matteson Frankfort
45
rvil le Na pe per Na n ngto Was hi
Cottage Grove
80
Halsted
© 2016 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. All logos displayed on this map are the property of their respective owners, used solely to indicate that businesses associated with those marks are located in buildings displayed on the map. All Rights Reserved. Sources: Location Analytics & Mapping (877) 580-4674; Nielsen, StreetPro, GDT, Google
Lansing 183rd
Homewood Flossmoor
Lincoln Hwy
New Lenox
Martin Luther King Michigan
Tinley Park
Hwy
52
Halsted
6
Ashland
Lincoln
South Holland
Hazel Crest
57
80
151st
Calumet City
159th
Cicero
52
Dolton
Harvey
167th
Mokena
Joliet
Jefferson
130th
Riverdale
Midlothian 50
Black
Shorewood
ln co
Oak Forest
80
6
Kedzie
Ingalls
Western
Theodore
94
Blue Island
Markham 80th
Will County
Crest Hill
94th
55
Caton Farm
111th
Crestwood
6 Orland Hills
Lockport Hw y
Damen Western
159th
Harlem
Orland Park
84th
co ln
Crawford
Homer Glen
7 Lin
Kedzie
Bell
355
143rd
151st
Alsip
43
95th
20
111th
294 Palos Park
Will Cook
State
Plainfield
79th
103rd
Chicago Ridge
Palos Heights
171
63rd
87th
12
Cicero
45
Romeoville
Kendall County
Cicero
Lemont
55th
Evergreen Park
Worth 53
51st
71st
Oak Lawn Palos Hills
Schmidt
Weber
55
47th
Burbank
95th
Boughton
30
43rd
90
87th
Bolingbrook 59
er ch
Midway Airport
Hickory Hills
Oswego 34
Pulaski
55
Hwy
30
Bridgeview
Burr Ridge
Willow Springs
Laramie
eld infi Pla Darien
31st
Bedford Park
Harlem
Woodridge
Justice
Kingery
Book
Orchard
Naperville
Montgomery
75th
Woodward
75th
Willowbrook Robert
Hobson
Summit
16th 22nd
41 Ar
McCook
45 Hodgkins Countryside
en
55
Stickney
Roberts
k
12
Riverside
20
Wolf
63rd
Garfield
Aurora
Westmont Main
New Yor
go Chica
55th
Western Springs
d Og
Cicero
Berwyn
34 Lyons
LaGrange
Hinsdale
le
Madison
Eola
Prairie
34
Liberty
Map
County Line
Lisle Indian Trail
83
Downers Grove
Austin
n Ogde
Central
Warrenville
88
Highland
d Butterfiel
North Aurora
53
Downtown Chicago
Roosevelt
North Riverside
LaGrange Park 31st Brookfield
Oak Brook
Butterfield
Chicago
Adams
290 Oak Park
Kirk
56
Division
Gra nd
50
Cermak
Westchester
88
Fullerton
North
Oak Park
Forest Broadview Park
Roosevelt
Diversey
North
Ridgeland
Wheaton
Batavia
Belmont
94
25th
Roosevelt
38
Wilson
Finley
Randall
Winfield
Irving Park
90
River Elmwood Grove Park
Melrose Park River Lake Forest Bellwood Maywood
Elmhurst Villa Park
Madison
Montrose Addison
294
Meyers
Fabyan
Lombard
Glen Ellyn
Lawrence Els to n
43
Franklin Park
St Charles
355
Pratt
n Li
DuPage County
Geneva
Cook County
Wolf
Geneva
West Chicago
Howard
Schiller Park
Mannheim
Roos evelt
Oakton
Touhy
Rosemont
Addison
Bloomingdale
64
Addison
Main
Park Ridge
290
Glendale Heights
Dempster
Lincolnwood
Grand
Schmale
Randall
Carol Stream
Church
Skokie
Niles
Bensenville
Army Trail
St Charles
Galena
Wood Dale
Itasca
Bloomingdale
North
Morton Grove
O'Hare Airport
Thorndale Irvin g Pa
Evanston
21
83
Devon
Lake
Wilmette
Golf
Lake
Schick
25
38
Elk Grove Village
Busse
290
Winnetka
Lake
90
York
20
Central
Des Plaines
72
Expwy
19
Roselle
59
Wayne
64
O'H are
Hanover Park
Bartlett
31
Meacham,
Randall
Schaumburg
Bartlett
Kane County
Higg ins
Schaumburg
Glenview ee
Streamwood
y
Northfield
45
Mount Prospect
Golf Bode
Hw
Michigan
Tower
Winnetka
k au ilw M
58
Elgin
Roselle
20
Hoffman Estates
Euclid
rth we st
Wolf
90
Shoe Factory
No
Rolling Meadows
Alg onq uin
94
294
Prospect Heights
Heights
South Barrington
Higgins
be r
Arlington Hts
Tim
Glencoe
Northbrook
Palatine
Palatine
Lake
Dundee
Wheeling
Ra nd
14
62
East Dundee
Sleepy Hollow Big
41
Dundee
Palatine Dundee
90
Deerfield
ay
Alg o
Riverwoods
21
Lake Cook
Barrington Hills
Randall
Hu ntl ey
45 Buffalo Grove
Lake Cook
Highland Park nB ee
Kildeer
Deer Park
5
Gr
Algonquin
2.5
miles
Bannockburn
Lincolnshire
Long Grove
Lake In The Hills
0
43
Vernon Hills
12
Lake Barrington North Barrington
Algonquin
Lake Forest
Town Line
Terra Cotta
Crystal Lake
Lake Bluff
94
21
14
Areas With Retail Sales Over $500 Million Within 1 Mile Radius
North Chicago
137
59 Prairie Grove
Buckley
12
Park Forest
Sauk
Richton Park
South Chicago Heights
Sauk
Sauk Village 231st
Steger
CHICAGO RETAIL OVERVIEW | 33
Š 2016 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.