Chicago offers a business cost advantage over many global cities. It's a central hub with direct connections to all six Class-One North American railroads, six major U.S. Interstates, and more than 200 cities worldwide.
In KPMG's 2012 Guide to Competitive Alternatives, Chicago was ranked one of the most cost-effective cities in the world for doing business — ahead of New York and Boston — in terms of the combined impact of 26 significant business cost components including labor, utilities, facility, transportation, financing costs, and taxes.
Cost vs. Purchasing Power
PriceWaterHouseCoopers, in “Cities of Opportunity,” measured average costs of living and business occupancy against a city’s purchasing power. Chicago proved to be among the better deals, scoring higher than a host of global cities including Paris, Tokyo, Beijing, New York, Shanghai, London, and Singapore.
Competitive Office & Industrial Rates
Chicago's office and industrial space costs are highly competitive, meaning reduced overhead and superior “urban value.”
According to the Prime Office Occupancy Costs study (CB Richard Ellis, Dec. 2012), Chicago’s annual total occupancy cost per square foot was $49.15—well below central Hong Kong ($246), London ($220), Tokyo ($197), Beijing ($185), Shanghai ($116), New York ($114), Washington, D.C. ($95), San Francisco ($90), Boston ($88), and Toronto ($68).
Colliers International’s Midyear 2013 industrial report showed similar results, with lower industrial costs in Chicago ($3.71 USD/SF/yr) compared to other major cities including London ($21.95), Paris ($14.70), San Francisco ($9.48), Mexico City ($6.25), Tokyo ($6.24), and Los Angeles ($6.21).
Chicago's major utility companies including ComEd, AT&T, and Peoples Energy can deliver low-cost power to meet a company’s present and future needs. These utilities work closely with their communities and local & state governments to design competitive energy packages that support sustainable growth.