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Building News - March 2008
Report: Chicago Boomed With Retail Space in 2007

A report finds 2007 will have proven to be the biggest year for the delivery of new shopping center space in the Chicago area since the report started in 1983, says Oakbrook Terrace-based Mid-America Real Estate Corp.

The annual average from 1983 to 2006 was 4,956,500 sq ft of new space per year, and in 2007 Mid-America estimates a total of 8,432,000 sq ft of new shopping center space will have been built and delivered in 2007. This translates to a 70% increase over the average square footage delivered in the last 24 years.

Compared to 2006 alone, which was the third largest year for shopping center development in the report’s history, 2007 will show an increase of 2.4 million sq ft or about 40%.

Andy Bulson, the Mid-America vice president who authored the report, said that one of the reasons for the increase in square footage is that shopping center developments are continuing to spread in suburbs, while there are still a number of in-fill developments being completed in the densely populated areas of the city of Chicago and the surrounding collar communities.

Among other findings:

• Sporting goods category has been extremely hot with the Chicago market being penetrated with two Bass Pro Shops and two Cabela’s. Meanwhile, Dick’s Sporting Goods and The Sports Authority continue to fight for market share and new sites.

• Grocery has been a steady growth category with. Jewel adding three locations, all in far suburban growth markets, and Meijer opening a location but continuing to work on new deals primarily in growth markets, and still continuing to land bank. Whole Foods added three locations.

• The home improvement category began to slow down development in late 2006. However, they all hit the brakes in late 2007 as residential housing sales cooled. Menards opened three locations, Lowe’s opened two and Home Depot did not open any and closed their real estate office in Chicago. The future outlook for growth in the category appears minimal as the end to the housing slowdown is uncertain.

• Shifts in the big box category: While the delivery numbers for 2007 were huge, the final numbers were a little below 2006 estimates in large part due to Wal-Mart opening only four stores compared to the 14 that were originally estimated. Target’s slowing pace also affected the prediction.

The forecast for 2008 shows that the opening of the Interstate 355 extension will be a catalyst for development at each of the extension’s interchanges.

As retailers catch up to suburban residential growth that has taken place, urban in-fill locations that can serve the huge population densities of the city will become more desirable. Target, Lowe’s, and Wal-Mart are all focusing on locating stores in the city of Chicago and the surrounding collar communities. Nowhere is this more evident than in the South Loop of Chicago where retailers such as Whole Foods have recently opened very successful stores.

In the grocery category there will likely be continued decline in Dominick’s market share, as Wal-Mart and Jewel continue a measured growth (Jewel is on pace to add 2 or 3 units per year). Such growth could continue to dramatically impact the market with additional supercenters.

Although Kohl’s opened only one location in 2006 and JCPenney opened four locations, JCPenney growth plans will likely be more aggressive since most of their Chicagoland stores are located in regional malls.

The Chicago market remains a desirable area to develop power centers because of its diverse economy, which has continued to flourish while much of the Midwest has been stagnant, and over 9 million people in the extended MSA to serve, developers and retailers have turned to Chicago for new locations.


10-Span Arch Bridge Over Fox River Coming

A 10-span arch bridge is planned over the Fox River to increase traffic capacity on the Reagan Memorial Tollway (Interstate 88).

The eastbound bridge is being built just south of the existing Fox River Bridge under a $44.5 million contract as part of an Illinois Tollway widening project on I-88. The new bridge will be made of structural precast concrete and feature a series of five arches to replicate the design of the existing bridge, which opened in 1958.

The existing westbound bridge will be rehabilitated as part of a separate contract in 2009.

When work is complete, the existing bridge will carry three lanes of westbound traffic and the new span will carry three lanes of eastbound traffic. Currently, the existing bridge carries two lanes of traffic in each direction, with limited shoulders.

The new bridge is scheduled to be complete by the end of 2008. It is part of the Tollway’s Reagan Memorial Rebuild & Widen Project, which will widen I-88 from two lanes to three lanes in each direction between the Aurora Toll Plaza and Orchard Road. This program is scheduled to be complete by the end of 2009.

The new bridge will be 1,345 ft long, supported by 10 spans underneath the roadway, including five 178-ft-long spans. The five arches will be created using structural precast concrete arch segments cast on site. These arch spans will be topped by 36-in.-deep precast, prestressed concrete beams; the other five spans will use conventional 42- and 54-inch PPC beams. The team will fabricate a total of 40 precast concrete arch segments, with each segment weighing 92 tons.

The project also includes construction of two smaller bridges just west of the Fox River.

In addition, tollway work includes reconstruction of more than a mile of roadway, construction of more than 3 mi of temporary roadway and creation of a five-acre storm water retention site.

Chicago-based James McHugh Construction Co. is the contractor. Other team members include Indianapolis-based Janssen & Spaans Engineering and Chicago-based Bowman, Barrett & Associates as the design engineers.


Three Cranes Hoist Simultaneously Greek Church Roof

Three cranes were used to hoist a 50-ton gold dome to the top of Holy Trinity Greek Orthodox Church in Carmel, Ind. The structure will be the tallest in the suburban city.

Construction was begun on the 12,000-sq-ft, Byzantine sanctuary in August with the laying of the foundation and creation of the dome skeleton.

A plan was devised to construct the 50-ton dome at ground level and to lift it into place with three cranes. The dome-raising took a day, but there were many steps leading up to the final placement of the dome. Temporary dome bracing and lift areas and a lift-rigging were created so that the three cranes could hoist the dome on top of six steel columns. Once lifted, the dome was turned and positioned 40 ft above the ground.

Twin characteristics of an Orthodox domed-church are a series of windows surrounding the base of the dome inviting light into the sanctuary from virtually all angles and the installation of the traditional Christ the “Pantocrator” (He Who holds all in His Hands) icon within the center of the dome.

“The dome represents the ancient concept of the heavens as the dome of the universe set above the earth and providing the framework for the moon, planet, and stars,” said Rev. Anastasios Gounaris, Holy Trinity’s parish priest. “In the icon, Christ gazes down from the heavens and blesses the humans—the pinnacle of His Creation—who worship beneath it.”

Holy Trinity Church was founded nearly 100 years ago in Indianapolis and has known only two previous homes. Completion of the new church is scheduled for late 2008.

Indianapolis-based Shiel Sexton is the contractor, and San Francisco-based CJK Design is the architect.


AIA: Nonresidential Construction Expected to Soften in 2008

Weakness in the overall U.S. economy is translating to a tempered forecast for the nonresidential construction market, and spending is expected to increase only 0.7% in 2008 in inflation adjusted terms, a report from the American Institute of Architects says.

Moreover, growth in 2008 is expected to be at a slower pace than recent years, with commercial projects likely to see the most decrease. Also, continued volatility in the costs of building materials is expected.

These are highlights from the American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters.


MoDOT Archaeologists Complete Study of St. Charles ‘Mound’

Missouri Department of Transportation archaeologists recently completed an in-depth evaluation of an odd-shaped hill at the northeast corner of the intersection of Routes 94 and N and Mid Rivers Mall Drive, which are near the site of a future construction project.

The study determined that two local legends—that prehistoric Native Americans built the hill or that the hill was a mass grave for cholera victims—were false.

As part of the evaluation, MoDOT’s historic preservation section conducted archaeological excavations on the mound to determine its origin. Scientists determined this odd-shaped hill was a feature known as a “lost hill.” The mound was a portion of a ridge formed by windblown silt or clay near the end of the last ice age. Later, stream movements separated the hill from the ridge and gave the hill its odd shape.

MoDOT’s evaluation and an earlier excavation done in the late 1980s determined that prehistoric groups used the hill as a campsite. The artifacts discovered were limited to chert flakes and some pottery shards dating from after 800 B.C. Both excavations determined that the site consisted of small temporary camps that have been greatly disturbed by more recent farming, stock raising and lumbering.

Additionally, the archaeologists conducted an archival study to determine if there were any records of a cemetery or mass burial located on or near the hill. The documents indicated the first landowners were the McConnel family, who held the property until it passed to the Hall family in the 1870s and the Sandfort family in 1884. There were no records indicating any cemetery or mass burials. MoDOT also spoke with local health officials about health risks. All the officials contacted indicated that even if the hill had contained victims of cholera or other 19th century diseases, no communicable diseases could have survived until now.

Since the archaeological excavation was completed in November, portions of the hill have been graded. Crews will place extra fill material removed from the Route 364 work at Harvester Road in St. Charles around the hill as part of preparatory work for a future interchange at Route 94 and Mid Rivers Mall Drive.

Correction

Data for institutional construction was inadvertently left out of the total construction number in the table appearing in the local forecast of the January issue of Midwest Construction.

As a result, the projection changes for total construction in the four states where the magazine circulates. Rather than a 2% decline, as projected in January, a 1% decline is expected. Below is the table with all the data included:


Midwest Projection*(starts in millions of dollars)

Residential construction and nonresidential construction are expected to be down in the Midwest in 2008, but infrastructure and institutional are projected to see gains.

  2006 2007** 2008** % Ch. 08/07
Infrastructure 13,198 10,998 12,851 +16.8%
Institutional 10,270 10,973 11,484 +4.6%
Non-residential 20,738 22,485 21,453 -4.6%
Residential 28,357 22,868 20,910 -8.6%
Total Construction 72,504 67,324 66,698 -1%

*IL, IN, MO and WI; **forecast; source: McGraw-Hill Construction


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