Last week The Daily Herald Business Ledger reported that Tony's Finer Foods is in the final steps of purchasing a vacant Dominick's location in Schaumburg, Illinois. This would be the fifth suburban location for the grocer, in addition to the four Chicago addresses. After a July closing and months of renovations, the chain expects to open the Schaumburg location in early to mid-2016.
Vacant Properties Good Bargains plus Tax Funding
This article sparked our interest for a number of reasons:
1. We like to see dormant commercial spaces filled...especially large, big box spaces. Seeing stores vacant in shopping centers lowers morale for neighboring tenants, prospective tenants, shoppers and at the community at large. We always encourage our clients to look at the big picture when assessing vacant commercial space. Is the location good overall? Is the price right? Could we negotiate more due to the length of vacancy? Often times, owners are ready to get the "asset off their books," and will therefore come down on price significantly more than if the center was full.
2. It was noted in the article that "Tony's Finer Food has applied for a Cook County Class 7c property tax incentive, which provides a tax break for businesses that take over a property which has been vacant." This 5 year incentive will reduce the property assessment to 10 percent the first three years, 15 percent in the fourth year, 20 percent in the fifth, and then return to the normal 25 percent. This is a significant tax break and can especially help "up and coming" or "mom and pop businesses." We always encourage and help our clients look for TIF (Tax Increment Financing) districts and properties.
3. The last point we gathered from this article is that retail remains strong. After an economy hiatus recently, we are seeing continued growth in commercial real estate. As for grocers, WalMart continues to roll out their market concept of smaller stores, Mariano's continues to purchase new sites, and Aldi is building and renovating throughout Chicago. For more information about the Chicago grocery store landscape, check out this article.
Whether you are a grocery store or any type of commercial organization, let us help you find your business a home. We can save you money with TIF properties, landlord negotiations, and our overall knowledge of the Chicago commercial real estate market. Call us at 630.444.0444.