JANUARY 13, 2025
What will shape Chicago real estate in 2025 Here are some key events that unfolded in 2024 and what to look for in the months ahead By Danny Ecker and Rachel Herzog
Programs intended to close race-related economic gaps face elimination by an onslaught of court cases I PAGE 9
The Trump effect MICHELLE KAFFKO/ORGANIC HEADSHOTS
Bracing for the demise of DEI
Survive until '25. Commercial property investors hung on to the echo of an old Sam Zell mantra over the past year as the public health crisis faded further in the rearview mirror and hope grew for a so-called soft landing for the U.S. economy. But after a year of political change and post-pandemic adjustment, what will 2025 actually bring to stakeholders in Chicago real estate? Here are some key things that happened in 2024 and what to look for in the months ahead: ◗ What happened: Donald Trump's
election to the presidency reframed the commercial real estate conversation in Chicago and nationwide. Threats of tariffs, talk of firing federal employees who don't work from the office, the potential extension or creation of tax incentive programs, immigra-
tion reform, and the agenda of a Republican-controlled federal government have hefty implications for developers, construction firms, the labor pool and the state of Illinois at large. Gov. JB Pritzker was quick to raise a shield, declaring his focus on shoring up protections for Illinoisans. "You come for my people, you come through me," he said during a news conference in November. ◗ What to look for in 2025: Chicago
was Trump's social media punching bag during his first term. Will that be the case again, particularly with Pritzker's rising national profile in the Democratic Party? Institutional real estate investors and lenders are already leery about directing capital into Chicago, and more attention on the city's challenges won't help. Will federal funding be provided for major infrastructure projects tied to thousands of construction jobs like the modernization of See REAL ESTATE on Page 18
Is Hershey the white whale for Oreo-maker Mondelez? The Chicago-based snack maker is reportedly exploring an acquisition of the iconic chocolate company. It’s not the first time. Oreo-maker Mondelez International has been trying to break into the U.S. chocolate market for years. The main owner of Hershey, the king of American chocolate, has once again dashed its dreams. Bloomberg reported last month that Mondelez was exploring an acquisition of the Pennsylvania-
based Reese’s-maker, citing people familiar with the matter. Hershey, with its namesake Kisses, dominates the American chocolate world. Acquiring it would have vaulted Mondelez to the top of a category in which it barely plays. However, Hershey’s main owner rejected a preliminary takeover bid from Mondelez, Bloomberg reported Dec. 11.
The news was not surprising. The Hershey Trust, which holds roughly 80% of the company’s voting power, has impeded past takeover attempts, including one from Mondelez in 2016. The trust is motivated by factors beyond normal market conditions. As such, acquiring Hershey has become a white whale.
BLOOMBERG
By Ally Marotti
See MONDELEZ on Page 15
VOL. 48, NO. 1 l COPYRIGHT 2025 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED
HEALTH CARE If private equity buys Walgreens, these assets could face the chopping block. PAGE 3
A CHICAGOAN TO KNOW Delphine Pontvieux, the founder of Nyet Jewelry, is an actor and artist, as well as an author. PAGE 5