McKinley Park Existing Conditions Report

• A significant portion of McKinley Park (26.6 percent) is devoted to manufacturing and industrial uses. In addition to the CMD, the neighborhood is located within the boundaries of two PMDs. Each PMD has specific zoning regulations that determine the permitted and special uses.
• While the CMD remains a strong economic asset, residents are concerned about the close proximity of industrial uses to residential areas. The community envisions a new direction for industrial uses and sees public engagement in the development process essential to realizing that vision.
• Two buildings within the CMD are part of a global C40 Reinventing Cities competition to transform underutilized sites as beacons of environmental sustainability and resilience. Supporting these type of sustainable renewal projects offer opportunities to maintain jobs locally and ensure the health and well-being of residents.
• Connecting existing and potential new businesses with assistance programs and resources, as well as creating workforce training and employment opportunities for local residents, was a top priority identified for the plan.
• Excellent access to the region’s freight rail network and easy access to the interstate makes it appealing for industries to locate in the CMD and PMDs. However, the truck traffic generated from these uses presents environmental and mobility challenges for local residents. The plan will identify and provide solutions for mitigating the negative impacts of freight on adjacent land uses.

Historically, McKinley Park was home to the once bustling CMD, which spans the neighborhood’s southern border. As seen in Table 8.1, industrial square footage makes up the majority of commercial real estate square footage in the neighborhood. As of the third quarter of 2018, there were 5.8 million square feet of industrial space within McKinley Park, with a vacancy of 11.3 percent. This vacancy rate is higher than the surrounding South Chicago submarket (4.4 percent) as well as the City of Chicago as a whole (5 percent).

Table 8.1. Commercial Real Estate Square Footage and Vacancy by Type, Q3 2018

Source: CMAP analysis of CoStar data
*Includes Flex Properties

Over the past decade, industrial vacancy in McKinley Park rose from 19 percent in 2008 to a high of 24.8 percent in 2013. Since 2013, however, vacancy rates have declined with tenants moving into the area’s industrial spaces. Approximately 88 percent of industrial buildings in McKinley Park are currently occupied. As seen in Figure 8.1, in 2017 the net absorption of industrial space was the highest it has been in a decade, which means that more tenants were moving in than moving out of industrial properties in the neighborhood.

Figure 8.1. Annual Industrial Inventory Vacancy and Absorption in McKinley Park, 2008- 2017

Source: CMAP analysis of CoStar data