city of elgin, illinois november...

RETAIL MARKET ANALYSIS

CITY OF

ELGIN, ILLINOIS

November 2015

Elgin Development Group 1 www.ElginDevelopment.com

EXECUTIVE SUMMARY The following conclusions and recommendations are found throughout this report. This section contains a summary of our extensive findings about the retail development potential in the City of Elgin. The analysis is useful to retailers interested in expanding. The Market Analysis addresses three key components: It identifies the current commercial areas, it examines the potential for future commercial development; and it gives recommendations and strategies that will allow Elgin’s retail sector to grow and add sales tax dollars.

General Findings

1. Elgin’s population has risen steadily to the September 1, 2015 estimate of 114,145. This estimate is based upon the U.S. Census Bureau’s QuickFacts Beta annual estimated increases of 1.8%. The population in 2010 was 108,188, while the 2000 population was at 94,487.

2. Sales Tax Data shows that the City of Elgin’s retail sales were at $2.46 billion in FY 2014-2015, up $16.7 million from FY 2013-2014 sales of $2.29 billion. These figures are slightly above those at the height of the retail market nearly a decade ago indicating a cautious recovery. State Sales Tax Collections and Distributions were up in almost every retail category from a year ago.

3. Retail Sales Lost or “Leakage” and Market Potential indicates that approximately $200 million is being spent by Elgin residents outside of Elgin. Leakages in the following categories represent potential new retail businesses that the City of Elgin would target to attract to Elgin: Grocery Stores, Clothing Stores, Sporting Goods Stores, General Merchandise Stores, and Furniture Stores.

4. The Retail Vacancy Rate in Elgin stands at approximately 8.2%. Total retail space is at 4 million Square Feet (SF) of which approximately 330,000 SF is vacant. The vacant Lowe’s property represents just over 100,000 SF of the current available vacant property, or 33% of the vacant retail space available in Elgin. Elgin’s vacancy rate is lower than other cities such as St. Charles (17.2 %), Naperville (12.3 %), and Aurora (10.1 %). With little new retail construction since 2011, and a low vacancy rate, demand for new retail construction is building.

5. Property Availability for potential new retail and the redevelopment of existing property could yield

additional opportunity for sales tax revenue growth. Properties located along Randall Road represent the bulk of available shovel ready retail space. The western third of the City of Elgin, roughly from Randall Road west to Route 47, offers future retail development opportunities as more households are built.

6. Major Shopping Centers and Competition affecting the City of Elgin:

Algonquin Commons, Algonquin Geneva Commons, Geneva

Spring Hill Mall, West Dundee South Elgin Crossing, South Elgin Sutton Park, Streamwood Woodfield Mall, Schaumburg


7. Study Project Areas

The Retail Market Analysis focuses on the nine primary commercial corridors within the City of Elgin: Randall Road Downtown Central Business District McLean Boulevard Chicago Street Larkin Avenue Summit Street Dundee Avenue State Street U.S. Route 20 & Nesler Road

8. E-Commerce Sales as a percent of total retail sales in the United States represents 6.5% of all retail

sales according to the U.S. Census Bureau. Retail experts predict that e-commerce sales will plateau at no more than 8.5% of total retail sales. Consumers continue to frequent brick and mortar stores, and enjoy the personal experience of touching and feeling the products they purchase. The internet will continue to be a source for consumer searches for retail product information and price. Retailers are using the internet for marketing their stores and promoting their products.

9. U.S. Shopping Center Occupancy and Net Operating Income had a banner year in 2014 and 2015 according to research from the International Council of Shopping Centers. The U.S. occupancy rate was 92.7 % for open-air shopping centers, the highest level since 2008. The occupancy rate for enclosed malls was 94.2 %, a level not seen since 1987. The 34 listed U.S. Real Estate Investment Trusts delivered returns of 27.62 % with the regional mall category being the strongest with a 32.64 % return.

10. Elgin’s Retail Market is Stable, shows average spending and low leakage in most categories according to Dun & Bradstreet’s ESRI research division. Retailers in Elgin do a good job of capturing the disposable income dollars that consumers spend as reflected by ESRI’s Leakage/Surplus Factor reports and Market Potential Index reports. Elgin’s retail market has a low vacancy rate, stable lease rates, and favorable demographics.


Randall Road Corridor A basic method for determining the demand for retail facilities on a particular site involves the division of the Trade Area into smaller parts for analysis. This study will analyze Elgin by dividing it into 9 different corridors.

The Randall Road corridor stretches nearly 8 miles through Elgin serving various consumers and containing several submarkets. This corridor is the largest and most diverse in Elgin made up of primarily regional retailers that draw people from a larger area than just Elgin.

Business Data Randall Road contains over 100 different retailers including 40 restaurants, 15 automotive related businesses, 10 financial institutions and various discount department stores. Retailers found along the corridor such as Starbucks and Panera Bread primarily serve the local population, while retailers such as Volkswagen and Sam’s Club serve a larger regional population. This diversity helps to draw consumers from a wider area.

North-Between Northwest Parkway & U.S. 20 7-Eleven, Brilliance Subaru, Burnt Toast, Carmina’s Restaurant & Banquets, Citibank, Dairy Queen/Orange Julius, FedEx Office Print & Ship Center, Hertz Rent-A-Car, Home Depot, Jimmy’s Charhouse, McGrath Honda, Nail Art & Spa, Panera Bread, Randy’s Vegetables, Rookies Sports Bar & Grill, Shell Gas, Starbucks, Sushi Station, T- Mobile, Village Pizza & Pub and Volkswagen.

Midway-Between U.S. 20 & South Street Aldi, Applebee’s, Baskin Robbins, Big Lots, Boston Market, Burger King, Burlington Coat Factory, Chase Bank, Citizens Finance, Dunkin Donuts, Edible Arrangements, EzBreezee Carwash, Fannie May, Firestone, First Community Bank, Great Clips, I-Hop, KFC, Lone Star Steakhouse, Little Panda Chinese, Marcus Elgin Cinema, McDonald’s, Office Max, Penny’s Place, Sally Beauty Supply, Sears Optical, Subway, Steak and Shake, T-Mobile, Target, USPS, Valvoline Instant Oil Change, Verizon, Walmart Site and White Cottage Pizzeria.

South-Between South Street & Hopps Road ATI Physical Therapy, Bakery Serafina, Bank of America, Batteries Plus Bulbs, Circle K Convenience Store, Discount Tire Store, Dollar Tree, Elgin Family Eye Care, Elgin State Bank, Enterprise Rent-A-Car, First Federal Savings Bank, Golden Corral, GR8Mart, H & R Block, Jimmy John’s, Kathy Fester-Country Financial, Lou Malnati’s, Lowe’s Site, Lucid Salon, Meijer Gas Station, Meijer, Menards, Merlin 200,000 Miles Shop, Nick’s Pizza & Pub, Noodles & Company, Oberweis Dairy, Old Town Pizza Company, PNC Bank, Portillo’s, Quest Diagnostics, Redbox, Rococo Life, Sam’s Club, Shell Gas, Silver Lake Chinese, Sam’s Club Gas Station, Sport Clips, Today Nails Spa, Tuffy Auto Service Center, UPS Store, Walmart Supercenter, Wendy’s and Wingstop.

Traffic Volume Randall Road is a major north-south roadway with four moving lanes and turn lanes. The road serves the Fox Valley area from Algonquin to the north to Aurora to the south. Randall Road intersects with the Jane Adams Expressway (Interstate 90) on the north, and the Reagan Memorial Highway (Interstate 88) to the south. In Elgin, major collector roads include Highland Avenue, Bowes Road and Hopps Road.

Illinois Department of Transportation traffic volume data between major intersections along Randall Road: On I-90 at Randall Road = 80,400 Randall Road between Northwest Parkway & I-90 = 46,700 Randall Road between I-90 & Highland Avenue = 38,700 Randall Road between Highland Avenue & U.S. 20 = 40,100 Randall Road between U.S. 20 & Bowes Road = 32,900 Randall Road between Bowes Road & Hopps Road = 19,800


Census Based Demographics on Drive Time and Distance Census figures include accurate 2015 current-year estimates and 5-year projection of U.S. demographic data including population, households, income, age, and housing for locations within 5, 10 and 15-minute drive times, and 1, 3 and 5-mile distances.

Randall Road North

Population 1 Mile 3 Mile 5 Mile 2015 Total Population: 11,276 71,460 142,579 2020 Population: 11,602 73,473 146,096 Pop Growth 2015-2020: 2.89% 2.82% 2.47% Average Age: 35.6 36.6 35.9 Households 2015 Total Households: 3,908 23,751 46,377 HH Growth 2015-2020: 2.79% 2.76% 2.51% Median Household Inc: $87,094 $82,495 $73,933 Avg. Household Size: 2.9 2.9 3 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $279,629 $222,239 $193,470 Median Year Built: 1996 1990 1979

Consumer Spending Data about products and services Elgin consumers are buying in different categories, including apparel, food and beverage, financial, and more.

1-Mile Consumer Spending 5-Mile Consumer Spending

Retail Marketplace Gap Analysis The Gap Analysis compares retail sales to consumer spending to measure the “retail gap” between supply and demand. The “leakage/surplus factor” is a measure between supply and demand that ranges from +100 (total leakage) to -100 (total surplus). A positive value represents “leakage” of retail opportunity outside of Elgin. A negative number represents a “surplus” of retail sales, or a market where customers are drawn in from the outside. This chart tells us where we might find opportunities to supply goods and services to new customers. Elgin Development Group 5 www.ElginDevelopment.com

Industry Group Demand Supply Retail Gap

Leakage/ Surplus Factor

Motor Vehicle & Parts Dealers $339 $398 -$59 -8.0 Furniture $37 $15 $22 41.3 Building Materials $61 $57 $4 3.3 Health & Personal Care $151 $152 -$1 -0.4 Clothing Stores $109 $85 $24 12.7 General Merchandise Store $285 $182 $103 22.0 Food & Drinking Places $198 $198 $0 0.0 Food & Beverage Stores $272 $193 $79 16.9

Randall Road Midway


Midway 1-Mile Consumer Spending Midway 5-Mile Consumer Spending

Population 1 Mile 3 Mile 5 Mile 2015 Total Population: 6,506 62,562 155,597 2020 Population: 6,719 64,557 159,282 Pop Growth 2015-2020: 3.27% 3.19% 2.43% Average Age: 42.3 36.8 35.9 Households 2015 Total Households: 2,428 21,412 51,772 HH Growth 2015-2020: 3.09% 3.09% 2.44% Median Household Inc: $82,812 $73,443 $72,413 Avg. Household Size: 2.6 2.9 2.9 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $214,412 $196,119 $189,666 Median Year Built: 1987 1979 1980


Retail Marketplace Gap Analysis The Gap Analysis compares retail sales to consumer spending to measure the “retail gap” between supply and demand. The “leakage/surplus factor” is a measure between supply and demand that ranges from +100 (total leakage) to -100 (total surplus). A positive value represents “leakage” of retail opportunity outside of Elgin. A negative number represents a “surplus” of retail sales, or a market where customers are drawn in from the outside. This chart tells us where we might find opportunities to supply goods and services to new customers.



Motor Vehicle & Parts Dealers $332 $295 $37 6.0 Furniture $36 $16 $20 37.7 Building Materials $59 $61 -$2 -0.9 Health & Personal Care $147 $191 -$44 -13.1 Clothing Stores $106 $76 $30 17.0 General Merchandise Store $277 $257 $20 3.8 Food & Drinking Places $193 $187 $6 1.5 Food & Beverage Stores $263 $160 $103 24.3

Randall Road South Population 1 Mile 3 Mile 5 Mile

2015 Total Population: 11,177 69,781 140,561 2020 Population: 11,499 71,735 144,050 Pop Growth 2015-2020: 2.88% 2.80% 2.48% Average Age: 35.6 36.6 36.0 Households 2015 Total Households: 3,862 23,176 45,734 HH Growth 2015-2020: 2.80% 2.74% 2.52% Median Household Inc: $87,685 $83,271 $74,601 Avg. Household Size: 2.9 2.9 2.9 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $207,433 $210,207 $197,457 Median Year Built: 1996 1991 1979







Motor Vehicle & Parts Dealers $332 $279 $43 7.1 Furniture $35 $11 $24 52.5 Building Materials $58 $62 -$4 -3.3 Health & Personal Care $142 $146 -$4 -1.2 Clothing Stores $103 $27 $76 57.4 General Merchandise Store $269 $220 $49 10.0 Food & Drinking Places $187 $133 $54 16.6 Food & Beverage Stores $255 $127 $128 33.4

The Randall Road Corridor offers the most potential for new retail growth in Elgin today because of the availability of land, leakage of spending to other communities, traffic volume data, and a combination of other factors.

East Chicago Street Corridor The East Chicago Street corridor stretches nearly 2.5 miles through Elgin serving various consumers and containing several markets. This corridor is draws people from a larger area because of the auto dealers found on the east side of Elgin. Business Data East Chicago Street contains over 35 different retailers including restaurants, automotive repair and sales, and general merchandise stores. Retailers found along the corridor such as Starbucks and Big Lots primarily serve the local population, while retailers such as Volkswagen and Sam’s Club serve a larger regional population. This diversity helps to draw consumers from a wider area.


Anthony Electronic, Art of Barter, Hollywood Furniture, Evolution Motors, A to Z Rentals, Ultimo Precio, Taylor Street Pizza, Elgin Beauty Supply, City Bank, Baskin-Robbins, Pizza Hut, 7-Eleven, Renew Auto Sales, Biggers Mazda, Biggers Chevrolet, Napleton Elgin Kia, Presta Motors, Elgin Hyundai, Renew Auto Sales, Affordable Autos, Islas Marias, Enterprise Rent-A-Car, Carstar Auto Body Repair Experts, McGrath Nissan, Feeny Chrysler- Jeep-Dodge, Route 19 Auto Body, Hertz Rent A Car, Xtreme Auto Body, Hopkins Ford, Biggers Mitsubishi, Cricket Wireless, Subway, San Luis Bakery, Mr. C’s Hot Dogs & More, and Elgin Liquor & Wine. Traffic Volume The East Chicago Street Corridor runs from Liberty Street (route 25) on the west to Shales Parkway to the east. Illinois Department of Transportation traffic volume indicates approximately 12,000 to 13,000 vehicles. Census Based Demographics on Drive Time and Distance Census figures include accurate 2015 current-year estimates and 5-year projection of U.S. demographic data including population, households, income, age, and housing for locations within 5, 10 and 15-minute drive times, and 1, 3 and 5 mile distances. Population 1 Mile 3 Mile 5 Mile

2015 Total Population 19,350 88,252 183,574 2020 Population: 19,410 89,029 186,507 Pop Growth 2015-2020: 0.31% 0.88% 1.60% Average Age: 33.0 34.6 36.1 Households 2015 Total Households: 5,631 27,962 61,182 HH Growth 2015-2020: 0.23% 0.83% 1.61% Median Household Inc: $55,309 $60,817 $68,281 Avg. Household Size: 3.4 3.1 2.9 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $150,620 $166,449 $183,440 Median Year Built: 1974 1971 1977







Motor Vehicle & Parts Dealers $383 $388 -$5 -0.6 Furniture $42 $15 $27 48.3 Building Materials $69 $64 $5 3.6 Health & Personal Care $170 $272 -$102 -23.0 Clothing Stores $123 $49 $74 42.7 General Merchandise Store $320 $279 $41 7.0 Food & Drinking Places $93 $69 $32 14.8 Food & Beverage Stores $303 $203 $102 20.0

Summit Street Corridor

The Summit Street corridor stretches nearly 3.5 miles through Elgin primarily serving residential neighborhoods. Business Data Summit Street contains over 31 different retailers including 3 grocery stores, 4 automotive repair and service shops, 4 banks, and 10 restaurants. McDonald’s, El Paraiso, Elgin State Bank, Blue Kangaroo Coin Laundry, Marathon Gas, Walgreens, AutoZone, PNC Bank, O’Reilly Auto Parts, Little Caesar’s Pizza, Mariscosel Amigo II, Quality Eye Care Clinic, 7-Eleven, Fifth Third Bank, Taco Bell, Chase Bank, Elgin Fresh Market, Jewel-Osco, Pep Boys Auto Service & Tires, Chicago Pizza Authority, Aldi, Medicine Shop, Los Girasoles, Chinese Wok, Village Discount Outlet Store, Amazing Dollar, Subway, Panda, Coinstar, Radio Shack. Traffic Volume The Summit Street corridor runs from Dundee Avenue to the west and Rohrssen Road to the east through Elgin. The Illinois Department of Transportation average daily traffic volume data along Summit Street west of Hiawatha is approximately 20,000 vehicles. The average daily traffic volume east of Hiawatha on Summit Street is approximately 10,000 vehicles. Census Based Demographics on Drive Time and Distance Census figures include accurate 2015 current-year estimates and 5-year projection of U.S. demographic data including population, households, income, age, and housing for locations within 5, 10 and 15-minute drive times, and 1, 3 and 5 mile distances. Population 1 Mile 3 Mile 5 Mile

2015 Total Population: 19,048 83,229 182,606 2020 Population: 19,083 84,187 185,525 Pop Growth 2015-2020: 0.18% 1.15% 1.60% Average Age: 34.1 34.5 35.9


Households 2015 Total Households: 5,878 26,090 60,424 HH Growth 2015-2020: 0.02% 1.15% 1.60% Median Household Inc: $58,137 $59,862 $66,597 Avg. Household Size: 3.2 3.1 3 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $168,124 $164,017 $180,705 Median Year Built: 1973 1968 1976






Motor Vehicle & Parts Dealers $368 $380 -$18 -2.4 Furniture $40 $20 $20 33.3 Building Materials $67 $47 $20 17.7 Health & Personal Care $164 $208 -$44 -11.7 Clothing Stores $119 $104 $15 16.6 General Merchandise Store $310 $234 $76 13.9 Food & Drinking Places $215 $216 -$1 -0.2 Food & Beverage Stores $296 $191 $105 21.4


Larkin Avenue Corridor The Larkin Avenue corridor stretches nearly 2 miles through Elgin serving various consumers and containing several submarkets. This corridor is primarily local retailers that serve the people of that neighborhood, but somewhat also serves people that drive along this arterial road in Elgin. Business Data Larkin Avenue contains over 40 different retailers including restaurants, a grocery store, automotive repair and service, and neighborhood shopping. Lakeside Auto Body, Ralph Helm Lawn Equipment Center, Dutch Inn West, Sires Feed and Pet Supply, Headquarters Salon & Spa, The Gaming Goat, KCT Credit Union, Nesbitt Auto Repair, Custom Cutting Edge Tool, Smiles for Life Dental, FYDO Land, Pro Wash Express, 3G’s Automotive, Allstate Insurance, Advance Auto Parts, A-1 Repair, Farmers Insurance, Signarama, Papa John’s Pizza, Winterville, Mobile Gas, Walgreens, PNC Bank, Fifth Third Bank, Jewel-Osco, Chase Bank, CITGO Gas, Brittain’s Express Oil & Lube, Beef Villa, Metro PCS Dealer, Dunkin Donuts, McDonald’s, Elgin Vision Center, Escamilla Auto Repair, West Pier Laundry, Northern Illinois Coin & Stamp, Schechter Auto Sales, and Herb’s Bakery. Traffic Volume Larkin Avenue is primarily a two-way, east-west road that generally runs from Randall Road (Illinois Route 34) to the west and Highland Avenue, near downtown Elgin, to the east. The road serves people travelling into either neighborhoods surrounding Larkin Avenue, the downtown, or people moving west. The Illinois Department of Transportation average daily traffic volume data along Larkin Avenue is between 9,000 and 10,000 vehicles. Census Based Demographics on Drive Time and Distance Census figures include accurate 2015 current-year estimates and 5-year projection of U.S. demographic data including population, households, income, age, and housing for locations within 5, 10 and 15-minute drive times, and 1, 3 and 5 mile distances.

Population 1 Mile 3 Mile 5 Mile 2015 Total Population: 26,530 101,134 173,028 2020 Population: 26,971 102,845 175,991 Pop Growth 2015-2020: 1.66% 1.69% 1.71% Average Age: 32.6 35.1 36.2 Households 2015 Total Households: 7,946 32,733 58,009 HH Growth 2015-2020: 1.70% 1.74% 1.70% Median Household Inc: $46,121 $58,339 $71,591 Avg. Household Size: 3.2 3 2.9 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $148,639 $162,996 $189,414 Median Year Built: 1947 1971 1981


Consumer Spending Data about products and services Elgin consumers are buying in different categories, including apparel, food and beverage, financial, and more. 1-Mile Consumer Spending 5-Mile Consumer Spending




Motor Vehicle & Parts Dealers $372 $401 -$30 -3.8 Furniture $40 $17 $23 40.7 Building Materials $67 $73 -$6 -4.3 Health & Personal Care $164 $184 -$20 -5.7 Clothing Stores $119 $59 $60 33.4 General Merchandise Store $310 $270 $40 6.8 Food & Drinking Places $216 $191 $25 6.0 Food & Beverage Stores $294 $159 $135 29.7


State Street Corridor The State Street corridor stretches nearly 4 miles through Elgin serving various consumers and containing several submarkets. This corridor serves people travelling through the area, institutional property owners, industrial property owners and residential neighborhoods. This corridor is primarily local retailers that serve the people of specific neighborhood areas, and people that drive along this arterial road in Elgin. Business Data State Street contains over 44 different retailers including 10 restaurants and 12 automotive repair/service shops. Thornton’s Gas, Dunkin Donuts, BP Gas, Alexander’s Restaurant, Bennigan’s, Baskin-Robbins, Jerry’s Café, Joyeria Eclipse, Viking Thrift and Artwork, Fox Valley Flea Market, Gerber Collision & Glass, ReStore, Innovative Wireless Solutions, 1 For The Road, PetroLiance Gas, State Street Market Shops, AA Elgin Flower Shops, Best Auto Body, Inter Auto Repair, Chihuahua Tire, H & N Auto Repair & Tires, Elgin Driveline, Pomp’s Tire, Abe’s Orphaned Furniture, Collingbournes Interesting Things, Prime Lenders Wiccan Supplies, The Gypsy Haven, El Faro, Elgin Jewelers, Divine Touch Salon, The Braiding Place, Westside Auto Body, J J Peppers Food Store, The Walnut Speakeasy, Shell Gas, Papa Smoke, Thai Lao Video & Gift Shop, Asian Food Market, Silvestres Upholstery, Precision Body Works, Kendall’s Kountry Kitchen, OMHS Car Care, Scott T’s Auto Repair, and Katz Automotive. Traffic Volume State Street, also known as U.S. Route 31, is primarily a two-way, north-south road that generally runs through Elgin from I-90 to the north to U.S. 20 to the south. The Illinois Department of Transportation average daily traffic volume data along State Street north of Highland Avenue is approximately 29,000 vehicles. Traffic Volume along State Street south of Highland Avenue is approximately 16,000 vehicles. Census Based Demographics on Drive Time and Distance Census figures include accurate 2015 current-year estimates and 5-year projection of U.S. demographic data including population, households, income, age, and housing for locations within 5, 10 and 15-minute drive times, and 1, 3 and 5 mile distances. Population 1 Mile 3 Mile 5 Mile

2015 Total Population: 25,665 104,165 173,304 2020 Population: 26,158 105,991 176,356 Pop Growth 2015-2020: 1.92% 1.75% 1.76% Average Age: 32.9 35.1 36.2 Households 2015 Total Households: 7,853 33,778 58,008 HH Growth 2015-2020: 1.92% 1.80% 1.74% Median Household Inc: $47,325 $59,136 $72,000 Avg. Household Size: 3.2 3 2.9 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $150,364 $164,405 $189,789 Median Year Built: 1947 1971 1981







Motor Vehicle & Parts Dealers $376 $401 -$25 -3.2 Furniture $41 $17 $24 41.0 Building Materials $67 $75 -$8 -5.5 Health & Personal Care $167 $184 -$17 -4.9 Clothing Stores $121 $68 $53 27.9 General Merchandise Store $314 $325 -$11 -1.7 Food & Drinking Places $219 $211 $8 1.9 Food & Beverage Stores $299 $172 $127 27.0

Dundee Avenue Corridor The Dundee Avenue corridor stretches nearly 2 miles through Elgin primarily serving residential neighborhoods. Business Data Dundee Avenue contains over 62 different retailers including 2 banks, 18 restaurants, and 20 automotive repair and service shops. Car-X Tire & Auto, Burger King, BMO Harris Bank, America’s Best Contacts & Eyeglasses, Dominos Pizza, Citgo Gas, Elgin Car Wash, Casa De Estilos, Bumper to Bumper Auto Parts, Lee Auto Parts, Broadway Auto &


Equipment Repair, Mercado La Festa, Express Bakery, Merlin 200,000 Miles Shop, Elgin Pharmacy, Jet Xpress Laundry, The Responsive Mail Room, KFC, Mobile Concepts, CVS Pharmacy, Homestyle Rent-to-Own, Family Dollar, Banquet Financial, Glamour Hair Salon, Art Olson Appliances & Furniture, This Is It Beauty & Barber, Gee N Jays, Elgin BBQ Pit, Taqueria Los Comales, Feliciano Auto Repair, Advance Auto Parts, Rus’ Auto Repairs, Tacos La Flor, K & S Automotive, Gat Bait & Tackle, Hall’s Vacuum & Sewing Center, Velazquez & Sons Mufflers, Wendy’s, Consumer Financial Services, Lee’s Video, Beef Villa, Lolly’s Doll Houses, Glenwood Motor Sales, Hoppe’s Tavern, Geno Nottolini’s Pizza & Catering, Xtreme Fashion, Price Rite Liquor, Shoe Factory, Speed Fasteners Plus, Kar Toyz, BP Gas, Dunkin’ Donuts, Subway, Speedway Gas, Arby’s, Baker Hill Pancake House, Sherwin-Williams Paint Store, CPM Motors, Roll-N-Donut, Bridgestone-Firestone, Shell Gas and Murph’s Motor Car. Traffic Volume The Dundee Avenue corridor runs from I-90 to the north and Dexter Avenue to the south through Elgin. The Illinois Department of Transportation average daily traffic volume data along Dundee avenue north of Congdon Avenue is approximately 22,000 vehicles. The average daily traffic volume along Dundee Avenue south of Congdon Avenue is approximately 13,000 vehicles. Census Based Demographics on Drive Time and Distance Census figures include accurate 2015 current-year estimates and 5-year projection of U.S. demographic data including population, households, income, age, and housing for locations within 5, 10 and 15-minute drive times, and 1, 3 and 5 mile distances. Population 1 Mile 3 Mile 5 Mile

2015 Total Population: 20,275 93,448 178,020 2020 Population: 20,458 94,869 180,963 Pop Growth 2015-2020: 0.90% 1.52% 1.65% Average Age: 33.9 34.9 35.9 Households 2015 Total Households: 6,132 30,041 58,976 HH Growth 2015-2020: 1.14% 1.56% 1.65% Median Household Inc: $52,254 $57,675 $68,227 Avg. Household Size: 3.2 3 3 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $156,033 $163,467 $182,890 Median Year Built: 1949 1968 1978







Motor Vehicle & Parts Dealers $378 $399 -$21 -2.7 Furniture $41 $16 $25 43.8 Building Materials $67 $72 -$5 -3.1 Health & Personal Care $168 $177 -$9 -2.6 Clothing Stores $121 $72 $49 25.2 General Merchandise Store $316 $325 -$9 -1.3 Food & Drinking Places $220 $219 $1 0.1 Food & Beverage Stores $301 $173 $128 27.0

McLean Boulevard Corridor

The McLean Boulevard corridor stretches nearly 5 miles through Elgin serving various consumers and containing several submarkets. This corridor serves people travelling through the area, institutional property owners, industrial property owners and residential neighborhoods. This corridor is primarily local retailers that serve the people of that neighborhood, but somewhat also serves people that drive along this arterial road in Elgin. Business Data McLean Boulevard contains over 75 different retailers including restaurants, a grocery store, automotive repair and service, and neighborhood shopping. Pops Pantry, Casey Automotive, Jester’s Fat Food, Big Skillet, McDonald’s, Dunkin Donuts, Subways, Popeye’s Louisiana Kitchen, Speedway Gas, First Community Bank, Clean Vistas Laundromat, El Faro, City Life Bakery,


Amigo Transmission Plus, De La Rosa Market, Butera Market, Western Union, De’s Fashions, Green Jade Chinese, Today’s Uniforms, Northwest Liquors, McLean Auto Repair, Gold Exchange, Accurate Personnel, Ameritrust Mortgage Corporation, Hooper’s Sports Bar & Grill, Pizza Hut, NAPA Autoparts, Dollar Tree, Windy City Jewelry & Loan, The Great Wall, Papa Saverio’s Pizzeria, Juanita’s, Dolex Dollar Express, AutoZone, Paul’s Restaurant, Larkin Floral & Gifts, Swift & Company Restaurant, BMO Harris Bank, Elgin Fresh Market, TCS Wireless, Taco Bell, Shell Gas, El Faro, Mobil Gas, White Pearl Restaurant, International Buffet, Boost Mobile, Family Dollar, Geno’s Fine Wine & Spirits, Elgin Shopping Mall, Cricket Wireless, Lemus Auto Repair, Bugsy’s Car Wash, Taqueria El Paraiso, Olson Beauty Supply, Jiffy Lube, Wendy’s, Marathon Gas, Hangout Bar & Grill, Colonial Café, Trendsetters Salon & Spa, Total Home Health, Nella’s Beef, Bunge’s Tire & Auto, Payless Tobacco, Fusion Fitness, Kyuki-Do Martial Arts, Jang’s Taekwondo, GOGOJI Restaurant and 7-Eleven. Traffic Volume McLean Boulevard is primarily a two-way, north-south road that generally runs from I-90 to the north to Bowes Road to the south. The Illinois Department of Transportation average daily traffic volume data along Larkin Avenue is between 19,000 and 21,000 vehicles. Census Based Demographics on Drive Time and Distance Census figures include accurate 2015 current-year estimates and 5-year projection of U.S. demographic data including population, households, income, age, and housing for locations within 5, 10 and 15-minute drive times, and 1, 3 and 5 mile distances. Population 1 Mile 3 Mile 5 Mile

2015 Total Population: 17,167 94,962 170,811 2020 Population: 17,642 97,237 174,333 Pop Growth 2015-2020: 2.77% 2.40% 2.06% Average Age: 36.8 35.4 36.0 Households 2015 Total Households: 5,708 31,016 56,728 HH Growth 2015-2020: 2.72% 2.47% 2.06% Median Household Inc: $57,912 $61,329 $72,691 Avg. Household Size: 2.9 3 3 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $167,266 $171,931 $191,153 Median Year Built: 1962 1871 1981







Motor Vehicle & Parts Dealers $372 $402 -$30 -3.9 Furniture $40 $17 $23 39.8 Building Materials $66 $75 -$9 -6.1 Health & Personal Care $164 $186 -$22 -6.4 Clothing Stores $119 $66 $53 28.3 General Merchandise Store $310 $293 $17 2.7 Food & Drinking Places $216 $197 $19 4.6 Food & Beverage Stores $294 $179 $115 26.8

Downtown Central Business District Corridor The Downtown Central Business District (CBD) corridor is roughly bounded by Kimball Street to the north; Dundee Avenue, Center Street and Villa Street to the east; National Street to the south; and the Fox River to the west. Business Data The Downtown CBD contains over 69 different retailers including 5 banks, 6 automotive repair and service shops and 21 restaurants. Danny’s Pizza, Elgin Food & Fuel Marathon Gas, Price-Rite Gas & Food, Afterset, Town & Country Gardens, Ziegler’s Ace Hardware, Elgin Key & Lock, Kellenberger Auto Service, The Haight, Crawford’s Automotive, Elgin Center Pharmacy, J. Zachary Bookseller, Charles Fast Food Taquerias, Fat Cat Custom Guitars & Repair,


Docuprint Forms & Signs, La Quebrada, Artistic Framing & Supplies, Domani Café, Fifth Third Bank, Shockey Jewelers, Floral Impressions, Elgin Knit Works, Soulful Sparrow, Bangkok House, La Herencia De Mis Padres, Associated Bank, PNC Bank, Bellas Bridal, Elgin Public House, Central Barber Shop, Salon Couture, Blue Box Café, Topnotch Tattoo, Priority Office Supply, Wall to Wall Retro, Elgin Antiques, Medusa Dance, Kim’s Black Belt Academy, Rediscover Records, Martini Room, Union National Bank, Al’s Café & Creamery, BBK Motorsport, Funky Rooster Tattoo & Art Gallery, Chooch’s Pizzeria, Royal Prestige, Bighead Tattoo, Central Barber Shop, Chase Bank, Tom’s Auto Clinic, Prairie Rock Bar & Grill, Sylvestre’s Upholstery, Dunkin’ Donuts, Nick’s Liquors, Joe’s Bar-B-Q & Fish, Subway, El Chicanito Bakery, Cricket Wireless, Lynn Beauty Supply, Payless Shoe Source, Butera Market, Family Dollar, Rent-A-Center, Wing Ho Chop Suey, La Casa Del Pollo Asado, Hygea Natural Products, Starfire Electronics, and Elgin Flowers. Traffic Volume The Downtown CBD corridor bounded by Kimball Street to the north; Dundee Avenue, Center Street and Villa Street to the east; National Street to the south; and the Fox River to the west. The Illinois Department of Transportation average daily traffic volume data is 24,400 vehicles on Kimball Street, 4,200 Vehicles on East Highland Avenue, 6,200 vehicles on East Chicago Street, 6,200 vehicles on National Street, 9,500 vehicles on Villa Street, 12,000 on Center Street, and 12,000 vehicles on Dundee Avenue. Generally, collector streets within the Downtown CBD have average daily traffic volumes of between 450 and 2,500 vehicles. Census Based Demographics on Drive Time and Distance Census figures include accurate 2015 current-year estimates and 5-year projection of U.S. demographic data including population, households, income, age, and housing for locations within 5, 10 and 15-minute drive times, and 1, 3 and 5 mile distances. Population 1 Mile 3 Mile 5 Mile

2015 Total Population: 26,530 101,134 173,028 2020 Population: 26,971 102,845 175,991 Pop Growth 2015-2020: 1.66% 1.69% 1.71% Average Age: 32.6 35.1 36.2 Households 2015 Total Households: 7,946 32,733 58,009 HH Growth 2015-2020: 1.70% 1.74% 1.70% Median Household Inc: $46,121 $58,339 $71,591 Avg. Household Size: 3.2 3 2.9 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $148,639 $162,996 $189,414 Median Year Built: 1947 1971 1981

Consumer Spending Data about products and services Elgin consumers are buying in different categories, including apparel, food and beverage, financial, and more. Elgin Development Group 20 www.ElginDevelopment.com





Motor Vehicle & Parts Dealers $377 $396 -$19 -2.5 Furniture $41 $17 $24 42.5 Building Materials $58 $62 -$4 -3.3 Health & Personal Care $67 $74 -$7 -4.8 Clothing Stores $121 $62 $59 32.1 General Merchandise Store $314 $338 $24 -3.6 Food & Drinking Places $219 $213 $6 1.4 Food & Beverage Stores $299 $171 $128 27.3

U.S. Route 20 & Nesler Road Corridor The U.S. Route 20 & Nesler Road Corridor primarily focuses on the western portion of the City of Elgin that is largely undeveloped and roughly bounded by Pingree Grove to the west, Burnidge Forest Preserve to the north, Randall Road to the east and South Street to the south. Business Data Triumph Community Bank, Marciano’s Pizza & Pastaria, Sammy’s Mexican Grill, Country Donuts, and Old Second Bank are the only retailers along the corridor.


Traffic Volume The Illinois Department of Transportation average daily traffic volume data for U.S. Route 20 west of Neslor Road is 19,100 vehicles and 25,000 vehicles east of Nesler Road. Traffic volume on Nesler Road is 7,400 vehicles per day. Census Based Demographics on Drive Time and Distance Census figures include accurate 2015 current-year estimates and 5-year projection of U.S. demographic data including population, households, income, age, and housing for locations within 5, 10 and 15-minute drive times, and 1, 3 and 5 mile distances.

Population 1 Mile 3 Mile 5 Mile 2015 Total Population: 4,522 43,610 128,793 2020 Population: 4,721 45,186 132,454 Pop Growth 2015-2020: 4.40% 3.61% 2.84% Average Age: 38.2 37.9 35.9 Households 2015 Total Households: 1,550 15,027 42,556 HH Growth 2015-2020: 4.13% 3.45% 2.88% Median Household Inc: $104,403 $84,223 $77,066 Avg. Household Size: 2.9 2.8 3 2015 Avg. HH Vehicles: 2 2 2 Housing Median Home Value: $274,308 $224,176 $203,558 Median Year Built: 2002 1992 1983







Motor Vehicle & Parts Dealers $287 $46 $241 72.2 Furniture $31 $9 $22 53.9 Building Materials $52 $44 $8 7.6 Health & Personal Care $126 $105 $21 9.1 Clothing Stores $92 $44 $48 35.6 General Merchandise Store $238 $207 $31 7.1 Food & Drinking Places $166 $112 $54 19.6 Food & Beverage Stores $226 $110 $116 34.4

METHODOLOGY AND DEFINITIONS The approach has been to identify market forces and existing conditions that directly or indirectly affect the retail market potential for nine different corridors in Elgin. A number of items were considered and incorporated into the analysis to determine the widest array of items that could impact retail development: They included the items listed below:

1. Demographic information such as population, population growth estimates, population characteristics by location, number of households, household growth estimates, average household size, household growth estimates median household income, average age, and much more for 2000, 2010, 2015 and 2020.

2. Census information based upon drive times and distances from a strategic location, retail zoned lot, and/or other important, identifiable point. Standard distances of 1, 3, and 5 mile used by retailers when identifying potential retail sites. Common drive times of 5, 10 and 15 minutes were used to analyze a retail location for its potential.

3. The nine corridors were surveyed for the type and number of businesses in each area. The survey identifies existing retailers, which gives potential new retailers a look at the competition. Some retailers use the information because they prefer to be near the completion, while others use the information because they prefer to stay a certain distance from their competitors.

4. Consumer spending patterns were gathered in key categories such as apparel, entertainment, food and alcohol, transportation, health care and education. Retailers use this information to understand the size of the market and amount spent in specific retail categories. Retailers and developers would eventually research spending in greater detail based upon their specific retail and development type.

5. Elgin’s existing plans and documents were reviewed and incorporated into the analysis. Zoning maps, Envision Elgin Comprehensive Plan, Strategic Plan 2013-2017, Illinois Department of Transportation plans, the draft City of Elgin Existing Conditions Report and other long range plans affecting the study area.

6. A retail market gap analysis was used to measure the “gap” between supply and demand. A leakage/surplus factor ranges from +100, total leakage, to -100, total surplus for multiple retail categories. The analysis is used by retailers to determine the financial opportunity to sell their product, determine market penetration and ability to move into the market area.


Various sources of information were gathered from the following locations: United States Department of Commerce; Bureau of the Census, QuickFacts, Illinois, City of

Elgin, Kane County, and Cook County. United States Department of Commerce; Bureau of the Census, 2000 and 2010; Building

Permits, Business, Economy, Education, Employment, Families and Living Arrangements, Housing, Income and Poverty, and Population; Elgin, Kane County, Cook County and other cities.

United States Department of Commerce; Bureau of the Census, American FactFinder, 2000 and

2010; Age, Business and Industry, Origins and Language, Race and Hispanic Origin, and others; Elgin City, Kane County and Cook County.

Illinois Department of revenue, Sales Tax Receipts by Kind of Business, Kane, McHenry and Cook Counties; and the City of Elgin, Illinois.

City of Elgin; Strategic Plan 2013-2017.

City of Elgin; Envision Elgin Comprehensive Plan and components.

Illinois Department of Transportation; Average Daily Traffic Counts, Featured Road Improvement Projects, Illinois State Transportation Plan and Illinois State Transportation Plan.

Kane County Division of Transportation; 2040 Roadway Plan and 2040 Transit Plan.

Elgin Chamber of Commerce.

Esri; ArcGIS Platform; Household Budget Expenditures, Maps, Market Profile, Net Worth Profile, Retail Market Potential, Retail Marketplace Gap Analysis, Restaurant Market Potential, Tapestry Segmentation, and others.

Hoovers; Dun & Bradstreet Company; City of Elgin, Illinois, Business Build A List and Analytics, Industry Penetration Report.

CoStar Realty Information Inc.; Analytics, Comparables, Lease Analysis, People, and Property; Retail Analytics, City of Elgin, Illinois.

Dundee Township Assessor’s Office; Property Search; Elgin, Illinois.

Elgin Township Assessor’s Office; Property Search; Elgin, Illinois.

Kane County Recorder’s Office; Land Records Search; Elgin, Illinois.


For further information, please contact:

Tony Lucenko

EDG Director

Elgin Development Group

31 South Grove Avenue

Elgin, Illinois 60120

Ph: 847-741-5660

Cell: 847-809-8711

[email protected]


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