Chicago offers a business cost advantage over many global cities. It is a central hub with direct connections to all six Class-One North American railroads, six major U.S. Interstates, and more than 220 cities worldwide.
In a 2008 study published by KPMG, Chicago was ranked one of the most cost-effective cities in the world for doing business—ahead of London, New York, and Boston—in terms of the combined impact of 27 significant business cost components (including labor, utilities, facility, transportation, financing costs, and taxes) on the cost of startup and operations over 10 years.
Cost vs. Purchasing Power
PriceWaterHouseCoopers, in a 2008 study comparing “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 Toronto, Sydney, 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 November 2009 Global Office Rents snapshot compiled by CB Richard Ellis, Chicago’s annual occupancy cost per square foot was $36—lower than downtown New York ($43), suburban Los Angeles ($48), Shanghai ($59), and the central business districts of Washington, D.C. ($52), and Toronto ($61).
Colliers International’s mid-year 2009 industrial report showed similar results, with lower industrial costs in Chicago ($3.93 per square foot), compared to other major cities including Shanghai ($4.46), Toronto ($4.76), Los Angles ($6.84), and San Francisco ($9.96).
Utilities
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.
