An incomplete way to frame it: Lake County loses jobs and HQs to Chicago

The shift of headquarters and jobs from Lake County to downtown Chicago leaves a number of suburban buildings vacant:

The far north suburban county is bracing for the loss of about 2,700 office jobs by early next year, from prominent companies Walgreens Boots Alliance, Takeda Pharmaceutical Co. and Mondelez International…

History indicates corporate campuses in Deerfield and nearby suburbs — and the homes and businesses those high-paying office jobs support — can weather the storm. But the challenge has only intensified as more companies move jobs to downtown Chicago, in pursuit of younger workers who want to live in the city…

McDonald’s, Kraft Heinz, Motorola Mobility, Hillshire Brands, Gogo, Wilson Sporting Goods, Motorola Solutions and Beam Suntory are examples of companies that have moved their headquarters downtown in the past few years. Others, such as Walgreens, have established large offices in the city while retaining suburban headquarters…

A 2013 report outlining the county’s economic development strategy said losing any of the larger employers in the biopharma industry — such as Takeda — would be “devastating” to the county.

Such moves have real consequences for suburban areas. Filling and/or reviving large office parks and suburban campuses can be difficult. The loss of jobs and tax revenue can hurt.

At the same time, a story like this can reinforce notions that when Lake County loses jobs to the city of Chicago, this is a bad outcome. When the suburbs lose jobs to the big city or vice versa, someone is winning and someone is losing. Not necessarily: the region is still benefiting as the cities and suburbs depend on each other. From the perspective of the whole region, there is good news here:

-The fact that these companies want to stay in the Chicago region, whether in the suburbs or downtown, hints at the economic vitality and amenities of the whole area. With the bad news of Illinois’ financial issues, big companies are not leaving the state en masse.

-Other parts of the article hint that while the vacancy rate for office space is high in Lake County, there is still some business demand for these headquarters and campuses. Some locations might require more work to find a sizable replacement but they are not necessarily sitting empty for years.

-This presents opportunities – perhaps unwanted – for suburban municipalities to rethink suburban office parks and campuses. Rather than waiting for the big company to use the whole property, these could be future mixed-use sites featuring office, retail, recreational, and residential space. Rather than rely on single employers, suburbs could work to tie these campuses into the larger fabric of their community.

This could become a bigger problem if suburban properties stay vacant for a long time but these changes seem fairly normal for now: businesses move locations within a region to chase what they think are attractive options for workers (particularly young ones) and their bottom line. Perhaps more importantly, the suburb versus city battle over prestigious headquarters does not need to sour relations or perceptions. The region as a whole can continue to thrive even if there are changes to address within the metropolitan area.

Implicating suburban sprawl in the spread of ticks and pathogens

As new tick-borne illnesses spread, sprawl is part of the problem:

But as climate change, suburban sprawl, and increased international travel are putting more ticks and the pathogens they carry in the paths of humans, what’s becoming more urgently apparent is how the US’s tick monitoring systems are not keeping pace.

“It’s really a patchwork in terms of the effort that different areas are putting into surveillance,” says Becky Eisen, a tick biologist with CDC’s Division of Vector-Borne diseases. The federal public health agency maintains national maps of the ranges of different tick species, but they’re extrapolated from scattered data collected in large part by academic researchers. Only a few states, mostly in the Northeast, have dedicated tick surveillance and control programs. That leaves large parts of the country in a data blackout.

To help address that problem the CDC is funding an effort to identify the most urgent gaps in surveillance. It has also begun publishing guidance documents for public health departments on how to collect ticks and test them for diseases, to encourage more consistent data collection across different states and counties.

In an ideal world, says Eisen, every county in the US would send a few well-protected people out into fields and forests every spring and summer, setting traps or dragging a white flannel sheet between them to collect all the ticks making their homes in the grasses and underbrush. Their precise numbers, locations, and species would be recorded so that later on when they get ground up and tested, that DNA would paint a national picture of risk for exposure to every tick-borne pathogen in America. But she recognizes that would be incredibly labor-intensive, and with only so many public funding dollars to go around each year, there are always competing priorities.“But from a research perspective, that’s the kind of repeatable, consistent data we’d really want,” says Eisen. “That would be the dream.”

While there is little direct discussion of sprawl, I wonder if there are two problems at play.

First, sprawl puts more people in interaction with more natural settings. As metropolitan areas expand, more residents end up in higher densities in areas that previously had experienced limited human residence. More people at the wildland urban interface could potentially lead to more problems in both directions: humans can pick up diseases while nature can be negatively impacted by more people.

Second, increasing sprawl means more data needs to be collected as more people are at possible threat. Metropolitan areas (metropolitan statistical areas according to the Census Bureau) typically expand county by county as outer counties increase in population and have more ties to the rest of the region. Since many metropolitan regions expand in circles, adding more counties at the edges could significantly increase the number of counties that need monitoring. And as the article ends with, finding money to do all that data collection and analysis is difficult.

Making a horror film about illnesses carried by ticks would take some work to make interesting but these sorts of hidden and minimally problematic in terms of number of suburbanites at this point issues could cause a lot of anxiety.

Two-thirds of Chicago area jobs in the suburbs

The demise of Sears and its suburban headquarters, once famously downtown in a building that was the tallest in the world, does not mean that suburban jobs are disappearing:

Sears’ move to northwest suburban Hoffman Estates symbolized a trend: The economic ascendance of Chicago’s suburbs, which even in the early 1990s accounted for more than 60 percent of the region’s jobs.

At first glance, that dominance appears to be slipping as companies like McDonald’s make headline-grabbing moves back to the city from leafy suburban campuses.

But it would be wrong to point to Sears’ latest struggles, which eased Wednesday when the company’s chairman won a bankruptcy auction that prevented a liquidation of Sears, and conclude that the suburbs are down and out.

People working in the suburbs still provide two out of every three Chicago-area jobs, according to data provided by regional planners.

While the emphasis of this article is on the suburban Sears campus, the suburban jobs numbers stuck out to me. There are (at least) two ways to interpret the number that two-thirds of the jobs in the Chicago region are in the suburbs:

  1. Of course the majority of jobs in the Chicago region are in the suburbs: more than two-thirds of the region’s population lives in the suburbs. All those residents both help generate nearby jobs with their various consumer needs (from retail to food to building and construction) and help fill those jobs.
  2. This is a surprising figure. Chicago is a leading global city; how could so many jobs be in the suburbs when what really matters in the region is the strength of the Loop and nearby neighborhoods? Plus, it would be better if employers started in the city or moved back to the city to help create a strong base for the region as well as take advantage of the city’s economies of scale (including mass transit access) and cultural opportunities.

These figures are part of a larger trend that I think is underappreciated in the rise of American suburbs: the suburbs are jobs centers, not just a collection of bedroom communities. While the stereotypical American suburb is a community of subdivisions with occasional businesses, the suburbs are full of companies and firms doing all sorts of things. And it has been this way for decades.

Determining the complicated boundaries of the Chicago suburbs

Prompted by the discovery of Green Oaks, Illinois earlier this week, I went searching for a list of all of the Chicago suburbs. Instead, I found a discussion about where exactly the Chicago suburbs end. Here is an expert talking about this very issue in summer 2018:

The best definition of where the “suburbs” are, according to Ellis, is probably the boundaries of the Chicago-Naperville-Joliet Metropolitan Statistical Area

But calling everything inside those boundaries “the suburbs” is probably too simple…

So, Ellis said, the suburbs end to the west at the Fox River, to the south along the Lincoln Highway, and stretch along the train lines as far south as Michigan City, IN and as far north as Kenosha, WI.

The second map probably also conforms to cultural understandings in the region about what is really a suburb. There are places that could be within the far-flung orbit of Chicago but do not think of themselves or are not regarded by others as true suburbs.

This is an issue for many metropolitan regions, particular due to two changes:

1. Suburban areas keep developing further from the central city.

2. More people commute suburb to suburb rather than into the central city on a regular basis.

With more housing available further from the city as well as the presence of jobs in far-flung job centers, more residents can be part of a metropolitan region even if they rarely make a trip into the big city or do direct business with the big city.

Lakewood, CA caught between suburban housing or job choices

A profile of Lakewood, California, a paradigmatic postwar suburb, suggests the community is no longer home to numerous suburban dreams:

So they settled in Lakewood, among the rows of modest little ranch-style houses, repeated in one of 20 or so iterations, interspersed with shopping centers, parks and schools. It’s a landscape that today appears completely unremarkable, but half a century ago embodied a powerful vision of the good life in California…

“The promise of Lakewood was enough of the good things of an everyday life — a simple house, a yard, infrastructure of schools and churches and shopping centers,” said D.J. Waldie, an author and former city historian who wrote the book, “Holy Land: A Suburban Memoir,” about life in Lakewood from the 1950s, when the subdivision exploded out of lima bean fields into a suburb of 70,000…

Those solid middle-class jobs nearby have shipped out. To afford to buy a home here, a lot more people are living like Jenny Gov — spending more of their day in ever-worsening traffic, leaving little time to spend with family and neighbors, coaching Little League or exploring the wonders of California.

The promise of places like Lakewood has been carved down into little pieces with Californians forced to pick between them: choose the house or choose the nearby job, but seldom both.

The issue discussed in the article is a common one: the locations of jobs and affordable or even somewhat affordable housing are not necessarily close. Many metropolitan regions do not have the infrastructure to provide options besides driving for the important suburb to suburb trips that make up the largest segment of trips. And to some degree, these locations can change. When Lakewood was developed, how many people predicted the true multinucleated nature of the Los Angeles region?

Certainly, more affordable housing is needed. At the same time, is there hope of spreading out good jobs or introducing new jobs in more residential communities? The typical bedroom suburb does not have to remain as such.

Study suggests more traffic is related to stronger metro economies

What if traffic is not something to avoid but rather a byproduct of a strong economy?

By comparing historic traffic data against several economic markers, the authors found virtually no indication that gridlock stalled commerce. In fact, it looked like the economy had its own HOV lane. Region by region, GDP and jobs grew, even as traffic increased. This does not mean speed bumps should come standard on every new highway. Traffic still sucks, and things that suck should be fixed. What this study does is acknowledge that economically vibrant cities will always have congestion. So transportation planners should instead focus on ways to alleviate the misery rather than eliminate the existence of congestion…

Marshall acknowledges that no statistic can paint a perfect picture of reality, but he says he and his coauthor wrangled their analysis into coherence. Once they accounted for all the hanging chads, the overall trend was pretty clear: Traffic really didn’t do much to the economy. In fact, they found that if anything, places with higher car congestion seemed to have stronger economies. Specifically, per capita GDP and job growth both tracked upward as traffic wait times got worse.

It sounds like the study suggests the better the economy is, the more traffic there will be. I could think of two observations that go with these findings:

  1. The idea of ghost towns, both literal and figurative. If there is a lack of economic activity, the streets and buildings will be pretty empty.
  2. Jane Jacobs argued the most interesting neighborhoods are those with a lot of street and sidewalk activity. This is certainly related to economic activity of businesses, shops, and restaurants as well as the ability of residents and visitors to spend money.

Even if this is true, I would guess this knowledge would do little to help people stuck in gridlock feel better about the situation. They should think “I’m glad I have a good job in a thriving metro area and the traffic is the small penalty to pay for that.”

Perhaps a final piece to this would be to think about what would need to change in urban areas or driving to decouple these factors. Would a significant investment in mass transit counter this connection? More telecommuting and working from home?

Fallacy: if suburbs or a big city gain people, the other necessarily has to lose

The history of American metropolitan areas suggests that if a big city loses people, the suburbs gain people and vice versa. Yet, I argue this is an inadequate view of metropolitan regions. Consider a recent story on how the revival of downtown Detroit could harm its suburbs:

The failure of a few landmarks does not mean Detroit’s suburbs are doomed, but some local leaders see writing on the wall. Oakland County’s famously abrasive county executive, L. Brooks Patterson, has long taken a vocal pro-sprawl position, but even his government is making an effort to invest in the county’s handful of historic downtowns, via what’s touted as the “nation’s first and only county-wide Main Street program.” Archetypal suburbs like Troy are also getting in on the act. While it may be hard now to imagine walking along Troy’s main drag, a busy six-lane thoroughfare called Big Beaver Road, the city recently installed wider sidewalks, revised zoning to encourage taller buildings and multifamily housing, and took a stab at transit with a trolley-style shuttle bus.

“Everybody’s trying to create places in Southeast Michigan, which didn’t really have places before,” says Barry Murray, director of economic and community development for Dearborn, which borders Detroit to the southwest. “And there’s a lot of interest in diversified housing options, from young people who want to be in the hearts of downtowns.”

Dearborn, with a bustling commercial center of its own less than seven miles from Detroit’s, is in a better position to adapt to the changing times than most of its suburban peers. The city has been Ford’s hometown for the past century, and while a few thousand Ford workers might be moving down Michigan Avenue, the automaker is also spending more than $1 billion to reimagine its Dearborn headquarters along the lines of a Silicon Valley Tech Campus, and to create a new mixed-use development around Dearborn’s historic Wagner Hotel. Murray expects at least 1,000 new apartments to come online over the next few years—at present, he estimates, 90 percent of the city’s 38,000 housing units are detached single-family homes. Meanwhile, a declining mall where 1,800 Ford employees are temporarily occupying an old Lord & Taylor is “an active planning area,” Murray says. “We know these retailers are not going to be there forever.”

Southfield, just across Eight Mile Road from Detroit, could tell Dearborn a thing or two about disappearing retail—last year, it began tearing down Northland Center, the first shopping mall in America. Since Amazon turned down the city’s offer of the site for its second headquarters, Southfield is moving forward with a plan to crisscross the property with through streets and make way for offices, restaurants, apartments and a park—an effort to create a downtown in a city built without one. Says Mayor Kenson Siver, “We have a lot of plans here.”

This is a common approach to population changes: cities and suburbs are locked in a zero-sum mortal combat for residents. Suburbs have won this battle over time with over 50% of Americans living around major cities. (Hence, the countless stories in recent decades about a population migration to cities which will come at the expense of suburbs. I believe the data overall is limited regarding a major shift in American preferences for city life.)

I would suggest this view contains some truth – communities do compete with each other for prestige, jobs, their tax base, and residents – but also ignores the larger reality of how cities and suburbs work in today’s world. The metropolitan region is a connected unit and the communities and agents work together. The differences between suburbs and city are ultimately smaller than the differences with other metropolitan regions. If Detroit’s core attracts new businesses and residents, this can only be good in the long run. If Detroit is only able to attract businesses and residents from the suburbs, this is not real growth – it simply shuffling actors around within the region. When both Detroit’s suburbs and core bring in people from other regions, they can grow together and the metropolitan region (and all the people within it can thrive).

Of course, there are hurdles to coming to this perspective. Individual communities, city or suburbs, will not like if they lose assets and others around them gain. Racial and class differences lurk behind these current and historic differences. Money is tight. Ideally, suburban and urban leaders would come together to talk about how to proceed positively as a region. Going further, they could discuss how to share resources. (This is probably the toughest sell in American regions, particularly from wealthier communities who do not want to lose the resources they see as theirs.) But, working together for the greater Detroit area would pay off in the long run and help ensure a thriving region.