Latest news with #1871
Yahoo
02-03-2025
- Business
- Yahoo
Editorial: JB Pritzker's 1871 is exiting the Merchandise Mart. What does that mean for Chicago tech?
The news that 1871, Chicago's best known technology incubator, is leaving its longtime home at the Merchandise Mart seems at first blush like a warning sign — yet another indicator of the city's declining business environment. Don't get us wrong, we don't see this news as a positive sign. But we also don't believe Chicago's future as a vibrant tech hub hinges on the future of 1871, whatever that ends up being now. Then a venture capitalist, JB Pritzker co-founded 1871 some 13 years ago, some six years before he first won election as Illinois governor. The incubator's space at the Mart quickly became an energetic locus for tech startups in Chicago and, just as importantly, gave the city's nascent tech community a brand that was recognizable to Chicagoans outside the startup orbit as well as to funders and entrepreneurs in other cities. No doubt the governor is experiencing the same bittersweet feelings we heard and read from others in the tech world. The success of 1871 served Pritzker well in establishing his business bona fides with voters during his first campaign against another businessman, then-Gov. Bruce Rauner. It branded Pritzker as someone with his eye on the future. Much has changed in the 13 years since 1871 started. Most obviously, a pandemic upended office life as we knew it and nearly overnight forced business of all kinds to learn to work effectively from remote locations. Just last week, we heard Walmart CEO Doug McMillon address the Economic Club of Chicago making the point that Walmart now thinks of itself more as an e-commerce company than a brick-and-mortar retailer despite the continuing ubiquity of its stores throughout the nation. McMillon said that technological change had upended everything about the company, at least beyond its commitment to its culture and low prices. But as important as the pandemic's continued fallout in this instance: Chicago's tech scene has gravitated away from River North, where 1871 was located, and west to Fulton Market and the West Loop. Angel investors, venture capitalists, tech-focused bankers and entrepreneurs still gather in person; if ever an industry needs human connection, it's the startup world. But they do so increasingly in each other's offices, coffee shops and other dispersed locations like the Soho House. And those are largely in the West Loop. For 1871, as many employers discovered post-pandemic, physical space became an overly costly burden rather than a facilitator. The Chicagoland Entrepreneurial Center, the nonprofit that runs 1871, was losing money due to the rent it was paying at the Mart, and the number of tenants of space within the incubator had dwindled. CEO Betsy Ziegler said in a letter to members that 'we want to exit the leasing business.' Will 1871 have a physical presence at all in the future? That seems an open question at this point. The organization will need to decide its future role now that the 'incubating' part of what it does is over, at least in terms of physical space. The brand remains well-known, so we hope 1871 continues to play an important role in helping fledgling Chicago companies find their footing. But there are no guarantees. For Chicago leaders, the end of 1871 as a physical gathering space for techies is a reminder that nurturing and preserving the city as a tech hub is an urgent task. Chicago remains the capital of the Midwest and is the natural landing spot for ambitious, smart graduates from the universities throughout the region. The startup world is a youthful one, given the necessity of long hours and high energy to succeed as an entrepreneur or even a worker in the space. The job of marketing Chicago as a national tech player and serving as a fulcrum for what can be an insular world is critical and isn't a luxury the city can afford to do without. So who? What? Let's hope we know the answer to those questions soon. Submit a letter, of no more than 400 words, to the editor here or email letters@
Chicago Tribune
02-03-2025
- Business
- Chicago Tribune
Editorial: JB Pritzker's 1871 is exiting the Merchandise Mart. What does that mean for Chicago tech?
The news that 1871, Chicago's best known technology incubator, is leaving its longtime home at the Merchandise Mart seems at first blush like a warning sign — yet another indicator of the city's declining business environment. Don't get us wrong, we don't see this news as a positive sign. But we also don't believe Chicago's future as a vibrant tech hub hinges on the future of 1871, whatever that ends up being now. Then a venture capitalist, JB Pritzker co-founded 1871 some 13 years ago, some six years before he first won election as Illinois governor. The incubator's space at the Mart quickly became an energetic locus for tech startups in Chicago and, just as importantly, gave the city's nascent tech community a brand that was recognizable to Chicagoans outside the startup orbit as well as to funders and entrepreneurs in other cities. No doubt the governor is experiencing the same bittersweet feelings we heard and read from others in the tech world. The success of 1871 served Pritzker well in establishing his business bona fides with voters during his first campaign against another businessman, then-Gov. Bruce Rauner. It branded Pritzker as someone with his eye on the future. Much has changed in the 13 years since 1871 started. Most obviously, a pandemic upended office life as we knew it and nearly overnight forced business of all kinds to learn to work effectively from remote locations. Just last week, we heard Walmart CEO Doug McMillon address the Economic Club of Chicago making the point that Walmart now thinks of itself more as an e-commerce company than a brick-and-mortar retailer despite the continuing ubiquity of its stores throughout the nation. McMillon said that technological change had upended everything about the company, at least beyond its commitment to its culture and low prices. But as important as the pandemic's continued fallout in this instance: Chicago's tech scene has gravitated away from River North, where 1871 was located, and west to Fulton Market and the West Loop. Angel investors, venture capitalists, tech-focused bankers and entrepreneurs still gather in person; if ever an industry needs human connection, it's the startup world. But they do so increasingly in each other's offices, coffee shops and other dispersed locations like the Soho House. And those are largely in the West Loop. For 1871, as many employers discovered post-pandemic, physical space became an overly costly burden rather than a facilitator. The Chicagoland Entrepreneurial Center, the nonprofit that runs 1871, was losing money due to the rent it was paying at the Mart, and the number of tenants of space within the incubator had dwindled. CEO Betsy Ziegler said in a letter to members that 'we want to exit the leasing business.' Will 1871 have a physical presence at all in the future? That seems an open question at this point. The organization will need to decide its future role now that the 'incubating' part of what it does is over, at least in terms of physical space. The brand remains well-known, so we hope 1871 continues to play an important role in helping fledgling Chicago companies find their footing. But there are no guarantees. For Chicago leaders, the end of 1871 as a physical gathering space for techies is a reminder that nurturing and preserving the city as a tech hub is an urgent task. Chicago remains the capital of the Midwest and is the natural landing spot for ambitious, smart graduates from the universities throughout the region. The startup world is a youthful one, given the necessity of long hours and high energy to succeed as an entrepreneur or even a worker in the space. The job of marketing Chicago as a national tech player and serving as a fulcrum for what can be an insular world is critical and isn't a luxury the city can afford to do without. So who? What? Let's hope we know the answer to those questions soon.
Chicago Tribune
27-02-2025
- Business
- Chicago Tribune
Afternoon Briefing: Egg prices leave restaurants and bakeries scrambling
Good afternoon, Chicago. When St. Charles residents Terry Beltran and her husband Scott opened their mom-and-pop diner over 18 years ago, they never envisioned the one-two punch that would come their way nearly two decades into operating Daddio's Diner in Batavia. 'We got hit pretty bad with the last virus a few years ago and still haven't recovered from that,' Scott Beltran said recently about the COVID-19 pandemic. 'Now we have this issue with bird flu and the price of eggs that have gone through the roof. Honestly, we're nearly bankrupt.' Egg prices in the United States hit an all-time average high of $4.95 per dozen this month, officials have said, with the U.S. Department of Agriculture predicting the price could soar even higher as the year goes on because of the impact of bird flu. That means restaurants and other businesses that rely on eggs as a staple are scrambling to deal with the skyrocketing prices. Here's what else is happening today. And remember, for the latest breaking news in Chicago, visit and sign up to get our alerts on all your devices. In Midway near-collision, NTSB chair cites business jet crew's apparent 'failure to listen' The head of a federal agency investigating the near-collision at Midway Airport between a Southwest plane and a business jet has said the business jet pilot appeared to fail to follow instructions. 'We don't believe that this was an air traffic control issue,' said Jennifer Homendy, chair of the National Transportation Safety Board, in an appearance on 'Fox & Friends' this morning. Read more here. To help balance Mayor Brandon Johnson's 2025 budget, Chicago installing 50 new speed cameras to ticket drivers Ex-sailor pleads guilty to terrorist plot to attack Naval Station Great Lakes in 2022 Chicago tech incubator 1871 leaving the Mart after 13 years Launched in 2012, the nonprofit 1871 has been an anchor tenant at the Mart and the nexus of the Chicago tech scene for more than a decade, providing space, expertise and funding opportunities for a long roster of startups. Read more here. More top business stories: Mundelein school districts warn massive Wirtz family development will overwhelm schools and want developers to soften the blow Naperville craft brewers worried about potential impact of Trump's aluminum tariffs Sammy Sosa makes a big impression in his return to the Chicago Cubs as a guest instructor: 'He's an icon' Back in Cubbie blue for the first time since a turbulent ending with the organization in 2004, Sammy Sosa was soaking in the opportunity to connect with players, whether it was in the dugout at Sloan Park or spending time in the cage. Read more here. More top sports stories: Shedd Aquarium receives $10 million donation Chicago's Shedd Aquarium announced that it has received $10 million from the health care company Abbott, a longtime benefactor of the aquarium. Read more here. More top Eat. Watch. Do. stories: Love baseball movies? 'Play Ball!' is a new 8-inning film series at the Music Box 'Running Point' review: A lot like 'Entourage,' minus the bro-y energy Oscar-winner Gene Hackman, wife Betsy Arakawa and their dog were dead for some time, warrant shows Gene Hackman, 95, was found dead in a mudroom and his 63-year-old wife, Betsy Arakawa, was found dead in a bathroom next to a space heater, the Santa Fe County sheriff's office wrote in a search warrant. There was an open prescription bottle and pills scattered on the counter top near Arakawa. Read more here.
Yahoo
27-02-2025
- Business
- Yahoo
Chicago tech incubator 1871 leaving the Mart after 13 years
In a sign of the times, 1871, the influential Chicago tech incubator that has launched some of the city's most innovative startups, is vacating its longtime offices at the Mart. The decision, announced in a memo Wednesday by 1871 CEO Betsy Ziegler, cites the shifting realities of the struggling post-pandemic downtown office market. 'As an organization, we have continued to perform, but not at a level that allows us to sustain the real estate commitment that once served 1871 so well in the pre-COVID years,' Ziegler said. 'As such, we have no other option other than to relinquish our space at The MART.' Launched in 2012, the nonprofit 1871 has been an anchor tenant at the Mart and the nexus of the Chicago tech scene for more than a decade, providing space, expertise and funding opportunities for a long roster of startups. Over the years, 1871 has raised $4 billion in venture capital, given rise to more than 850 companies and created 15,000 jobs. But in recent years, its 140,000-square-foot co-working space in the Mart has been underutilized, as more 1871 members build and scale their companies remotely. The memo did not say if 1871 planned to find new office space or operate remotely itself. Ziegler and 1871 were not available for comment Wednesday afternoon. 'As we deal with our new economic realities, we are embracing a more flexible model that reflects today's entrepreneurial landscape,' Ziegler said in the memo. 'We will continue to leverage our incredible network of partners to showcase Chicago as a global hub for innovation.' The move out of the Mart comes as Chicago office buildings are at 52% of pre-pandemic occupancy levels, according to the latest weekly report by Kastle Systems. Meanwhile, many downtown Chicago office buildings have a lot of empty office space, with direct and sublease availability at a record 30.8% during the fourth quarter, according to real estate services firm Avison Young. At the same time, more major companies such as Amazon and JPMorgan Chase are beginning to mandate employees return to the office full-time, citing increased productivity under one roof. Celebrity video messaging website Cameo recently offered its 26 Chicago-area employees a $10,000 raise to return from their remote locations to the company's Fulton Market office on a full-time basis. Launched at 1871 eight years ago, Cameo exploded in popularity during the pandemic, achieving a $1 billion unicorn valuation in 2021 before struggling and downsizing in the post-pandemic landscape. The Merchandise Mart has evolved from old-school showroom center to high-tech office space during the new millennium under the ownership of New York-based Vornado Realty Trust. Developed by Marshall Field & Co., the Merchandise Mart opened in 1930 to house wholesale products for department store buyers. At 24 stories and 4.2 million square feet, the building was then the largest in the world, only to be surpassed by the Pentagon a decade later. Converted to government offices during World War II, the building was purchased by Joseph P. Kennedy for $26 million in 1945 and returned to its original use. Vornado bought the building from the Kennedy family in 1998 for between $250 million and $300 million. Current tenants include Motorola Mobility, PayPal, Conagra and Allstate. In September, Vornado touted that Northfield-based healthcare company Medline was tripling its space at the Mart to 161,000 square feet. Nearly that much space will likely hit the market with the exit of 1871, which started with 50,000 square feet in 2012 and expanded over the years. In addition to office space, the Mart still serves its initial function as well, housing more than 250 design showrooms, according to the Vornado website. A Vornado spokesperson did not respond to a request for comment Wednesday. rchannick@
Chicago Tribune
26-02-2025
- Business
- Chicago Tribune
Chicago tech incubator 1871 leaving the Mart after 13 years
In a sign of the times, 1871, the influential Chicago tech incubator that has launched some of the city's most innovative startups, is vacating its longtime offices at the Mart. The decision, announced in a memo Wednesday by 1871 CEO Betsy Ziegler, cites the shifting realities of the struggling post-pandemic downtown office market. 'As an organization, we have continued to perform, but not at a level that allows us to sustain the real estate commitment that once served 1871 so well in the pre-COVID years,' Ziegler said. 'As such, we have no other option other than to relinquish our space at The MART.' Launched in 2012, the nonprofit 1871 has been an anchor tenant at the Mart and the nexus of the Chicago tech scene for more than a decade, providing space, expertise and funding opportunities for a long roster of startups. Over the years, 1871 has raised $4 billion in venture capital, given rise to more than 850 companies and created 15,000 jobs. But in recent years, its 140,000-square-foot co-working space in the Mart has been underutilized, as more 1871 members build and scale their companies remotely. The memo did not say if 1871 planned to find new office space or operate remotely itself. Ziegler and 1871 were not available for comment Wednesday afternoon. 'As we deal with our new economic realities, we are embracing a more flexible model that reflects today's entrepreneurial landscape,' Ziegler said in the memo. 'We will continue to leverage our incredible network of partners to showcase Chicago as a global hub for innovation.' The move out of the Mart comes as Chicago office buildings are at 52% of pre-pandemic occupancy levels, according to the latest weekly report by Kastle Systems. Meanwhile, many downtown Chicago office buildings have a lot of empty office space, with direct and sublease availability at a record 30.8% during the fourth quarter, according to real estate services firm Avison Young. At the same time, more major companies such as Amazon and JPMorgan Chase are beginning to mandate employees return to the office full-time, citing increased productivity under one roof. Celebrity video messaging website Cameo recently offered its 26 Chicago-area employees a $10,000 raise to return from their remote locations to the company's Fulton Market office on a full-time basis. Launched at 1871 eight years ago, Cameo exploded in popularity during the pandemic, achieving a $1 billion unicorn valuation in 2021 before struggling and downsizing in the post-pandemic landscape. The Merchandise Mart has evolved from old-school showroom center to high-tech office space during the new millennium under the ownership of New York-based Vornado Realty Trust. Developed by Marshall Field & Co., the Merchandise Mart opened in 1930 to house wholesale products for department store buyers. At 24 stories and 4.2 million square feet, the building was then the largest in the world, only to be surpassed by the Pentagon a decade later. Converted to government offices during World War II, the building was purchased by Joseph P. Kennedy for $26 million in 1945 and returned to its original use. Vornado bought the building from the Kennedy family in 1998 for between $250 million and $300 million. The massive building was rebranded as the Mart as part of a $40 million renovation in 2016. Current tenants include Motorola Mobility, PayPal, Conagra and Allstate. In September, Vornado touted that Northfield-based healthcare company Medline was tripling its space at the Mart to 161,000 square feet. Nearly that much space will likely hit the market with the exit of 1871, which started with 50,000 square feet in 2012 and expanded over the years. In addition to office space, the Mart still serves its initial function as well, housing more than 250 design showrooms, according to the Vornado website. A Vornado spokesperson did not respond to a request for comment Wednesday. Originally Published: February 26, 2025 at 5:46 PM CST
