>>> GOOD EVENING AND WELCOME TO OUR SPECIAL HOLIDAY EDITION OF THE WEEK IN REVIEW.

TONIGHT IS THE ECONOMIC YEAR IN REVIEW AND A LOOK AHEAD OF THE MAJOR BUSINESS TRENDS IN 2023.

BLACK FRIDAY IS UNDERWAY AS THE YEAR OF ECONOMIC UPS AND DOWNS BARRELS TOWARD THE FINISH LINE.

NUMEROUS INTEREST RATE HIKES TOTALING NEARLY 4%, THE FED HAS ACTED AGGRESSIVELY THIS YEAR TO TRY TO CURB THE COUNTRY'S 8% INFLATION.

IS IT ENOUGH AND ARE THEY DONE ?

MEANWHILE, PRESIDENT BIDEN TRIES TO PUT A POSITIVE SPIN ON THE OUTLOOK.

>> INFLATION AT THE GROCERY STORE IS COMING DOWN SLIGHTLY, PRICES FOR THINGS LIKE CLOTHES AND TELEVISIONS, AND APPLIANCES ARE GOING DOWN AS WELL.

>> BUSIEST TRAVEL WEEKEND OF THE YEAR AS THE AIRLINE INDUSTRY LOOKS TO FINALLY GET BACK TO PRE-COVID PERFORMANCE.

TODAY KICKS OFF THE BUSIEST SHOPPING SEASON OF THE YEAR AS RETAILERS BANK ON BLACK FRIDAY AND THE HOLIDAYS TO PUT THEIR MARGINS OVER THE TOP.

MEANWHILE, POTENTIAL EARTHQUAKE AT A LOCAL GROCERY STORE MARKET THE PARENT COMPANIES OF JEWEL AND MARIANO BEGIN THE PROCESS OF A MAJOR CORPORATE MERGER.

CHICAGO REAL ESTATE MARKET STAYS HOT.

CITY LEADERS TRY TO CUT VACANCY RATES IN THE CENTRAL BUSINESS DISTRICT.

>> GOOGLE IS ONE OF CHICAGO'S MOST IMPORTANT COMPANIES.

>> GOOGLE BIG BET ON THE THOMPSON CENTER COULD PROVE TO BE A CATALYST.

>> 30 YEARS AND TWO YEARS LATER, I'M PLEASED TO ANNOUNCE THAT IN 2022, WE GOT THIS DONE.

>> Reporter: THE CITY MASSIVE CASINO PROJECT AIMS TO SPUR DEVELOPMENT AROUND THE CHICAGO RIVER AND BRING TAX REVENUE TO HELP WITH THE CITY'S BELEAGUERED PUBLIC PENSIONS.

>>> THE WEEKEND THE WEEK IN REVIEW PANEL, POLY FROM THE TRIBUNE, DENNIS OF CHICAGO BUSINESS, AND TRUDY OF BLOOMBERG.

LET'S GET INTO THE BROADER TRENDS OF THE ECONOMY, INFLATION MAKING THANKSGIVING GATHERINGS A LOT PRICIER.

THE FED HINTED AT ADDITIONAL INTEREST RATE HIKES AS WORRIES OF RECESSION GROW.

ILLINOIS ECONOMIC OUTLOOK LAGS THE NATIONAL AVERAGE.

PROPPED UP BY THE HOT REAL ESTATE MARKET.

NO FACT, FOLKS ARE DIGESTING TURKEY AND CRANBERRY SAUCE, HOW EXPENSIVE WAS YESTERDAY'S THANKSGIVING UP TO THE AVERAGE AMERICAN FAMILY COMPARED TO YEARS PAST?

>> PRETTY EXPENSIVE.

NOT SURPRISING BECAUSE GROCERIES ARE UP 12% OVER LAST YEAR.

THE THANKSGIVING MEAL EVEN MORE EXPENSIVE IN PART BECAUSE TURKEYS HAVE BEEN HIT BY INFLATION AND AVIAN FLU.

IT DID NOT SEEM LIKE YOU WOULD FIND TROUBLE FINDING A TURKEY THIS YEAR.

IT WAS MORE EXPENSIVE.

OVER THE LAST COUPLE YEARS, TURKEYS WERE 50% LESS THAN THEY WERE TWO YEARS AGO.

IT HAS INCREASED OVER THE LAST YEAR.

THANKSGIVING WAS DEFINITELY EXPENSIVE FOR PEOPLE ALREADY STRUGGLING.

THE HOLIDAYS ARE BIGGER BURDEN.

>> FOLKS FEELING FULL AND THERE BELLY BUT EMPTY AND THERE WALLETS.

THE FED HAS RAISED RATES SIX TIMES THIS YEAR, DO YOU THINK THEY ARE DONE OR ARE THERE MORE TO COME?

>> THE INDICATION IS THERE ARE MORE TO COME BUT THEY MIGHT NOT BE QUITE AS STEEP AS THE ONES WE HAVE SEEN RECENTLY .

INCREASES, SOME OF THE SAID, GOVERNORS , THEY ACKNOWLEDGE THERE IS A LAG BETWEEN INCREASING RATES AND ITS EFFECT ON INFLATION.

SIGNAL THEY WERE GOING TO SHIFT TO SMALLER INCREASES.

ANOTHER HOPEFUL SIGN WITH THE FACT THE RATE IN OCTOBER THE CLIENT A LITTLE BIT FROM SEPTEMBER.

>> MAYBE THEY ARE TAPERING DOWN A LITTLE BIT.

DENNIS, SO FAR THAT ADDED FOUR PERCENTAGE POINTS TO THE FEDERAL FUNDS RATE .

WHAT HAS THAT MEANT FOR MORTGAGES AND OTHER BANK RATES?

>> MORTGAGE RATES TEND TO FOLLOW WHAT THE FED DOES.

THE LENDING RATES HAVE DOUBLED IN THE COURSE OF 2022, STARTED THE YEAR IN THE LOW THREES AND BY LATE OCTOBER , IT CROSSED SEVEN.

THE RATE DIPPED BACK DOWN INTO THE HIGH SIXES WHICH IS WHERE WE ARE NOW.

THAT REALLY ADDED TO THE COST OF BUYING A HOME, WHICH CUT DRAMATICALLY INTO HOME SALES.

>> IT HAS BEEN KIND OF A WEIRD ECONOMY ALL YEAR.

INFLATION THE MAJOR FACTOR, UNEMPLOYMENT IS RELATIVELY LOW.

THERE ARE FEARS OF RECESSION NATIONWIDE.

TRUDY, HOW ABOUT ILLINOIS, ARE THOSE FEARS FELT HERE?

>> ILLINOIS TENDS TO GENERALLY LAG IN TERMS OF ECONOMIC GROWTH THAT HAPPENS BEFORE THE PANDEMIC AND THE UPS AND DOWNS WE'VE SEEN THE LAST COUPLE YEARS.

RIGHT NOW, THE UNEMPLOYMENT RATE IN ILLINOIS IS A LITTLE BIT HIGHER THAN THE NATIONAL AVERAGE.

LABOR MARKET OVERALL IS TIGHT.

ILLINOIS UNEMPLOYMENT A LITTLE BIT HIGHER THAN THE NATIONAL AVERAGE.

>> I WILL THROW THIS QUESTION TO ANYBODY, I'M SURE VIEWERS HAVE LOOKED AT THE ROLLER COASTER PERFORMANCE OF THEIR 401(K) OR IRA OR STOCKS THIS YEAR , DOES ANYONE ANTICIPATE THAT LEVELING OFF AND SEEING CONSISTENT GROWTH AGAIN?

>> AS FAR AS THE STOCK MARKET IS CONCERNED, UNTIL THERE IS MORE CERTAINTY ABOUT INFLATION THE DIRECTION OF INTEREST RATES, YOU WILL PROBABLY SEE CONTINUED FLUCTUATION EVERY TIME THERE IS A LITTLE IN ONE DIRECTION OR THE OTHER, THE MARKET REACTS.

>> UNCERTAINTY AROUND INTEREST RATES VERSUS, IT LOOKS LIKE THE ROLLER COASTER RIDE WILL KEEP GOING INTO 2023.

BACK LOCALLY ON THE CITY LEVEL, MAYOR LIGHTFOOT PASSED $16 MILLION BUDGET, LOTS OF GIVEAWAYS IN THE BUDGET, NEW REVENUE MAINLY BECAUSE THE REAL ESTATE REVENUE HAS BEEN PRETTY HOT THE LAST YEAR OR SO.

DO YOU THINK THE CITY CAN SUSTAIN THIS LEVEL OF BUDGETS?

>> I THINK IN TERMS OF THE CITY WHAT HAS HAPPENED, WE HAVE SEEN ECONOMIC RECOVERY NATIONALLY AND IN CHICAGO, ILLINOIS HAS BEEN STRONG.

THAT HAS HELPED IN TERMS OF THE REVENUE AND THE CITY CERTAINLY HAS USED SOME OF THAT ECONOMIC AND SCHEDULED AID TO HELP ALLEVIATE SOME OF THE PRESSURE THEY FELT DURING THE PANDEMIC AND EVEN BEFORE THAT, PENSIONS.

THE CITY CLAIMED THE PENSION OVER THE LAST FEW YEARS, THAT IS TO BE SEEN WHETHER THEY CAN SUSTAIN THAT LEVEL OF ECONOMIC RECOVERY , WE ALL QUESTION WHAT IS AHEAD.

>> THE CITY IS WORKING THROUGH A LOT OF THAT COVID STIMULUS MONEY THEY HAVE GOTTEN, BILLIONS OF DOLLARS WORTH.

THAT LIKELY WILL NOT BE COMING IN YEARS TO COME SO WE WILL SEE WHAT HAPPENS.

LET'S MOVE ONTO THE NEXT TOPIC OF DISCUSSION.

>>> THE RETAIL SECTOR, BLACK FRIDAY IN FULL SWING, RETAILERS BANK ON THE COMING MONTH TO MAKE THEIR MARGINS.

THE CHICAGO GROCERY MARKET IN FOUR MAJOR OF PEOPLE WITH THE PARENT COMPANY OF JEWEL AND MARIANO'S LOOKING EMERGE.

STARBUCKS IS AT WAR WITH WORKERS LOOKING TO UNIONIZE STORES.

THE CITY AND STATE LOSE MAJOR CORPORATIONS AS SOME CEOS BASH THE CITY CRIME AND ECONOMIC CLIMATE.

JOE CAHILL, BLACK FRIDAY, HOLIDAY SHOPPING SEASON, RETAILERS BANK ON THIS TO MAKE UP FOR LAGGING SALES THE REST OF THE YEAR.

ARE THEY PREDICTING ROBUST SEASONED THIS TIME AROUND?

>> I DON'T THINK THEY ARE EXPECTING ROBUST, I THINK THEY'RE HOPING TO HOLD THEIR OWN.

INTERESTING, CONSUMER SPENDING HAS HELD UP FAIRLY WELL SO FAR, DESPITE INFLATION.

THAT GIVES THEM SOME HOPE THEY WILL HAVE A GOOD HOLIDAY SEASON.

YOU NEVER KNOW AT WHAT POINT THE PAIN IS TOO GREAT FOR PEOPLE AND THEY START CUTTING BACK .

>> SPEAKING OF PAIN, BRICK AND MORTAR STORES, FELT A LOT OF PAIN, SOMETHING LIKE 20% VACANCY , WE TALK ABOUT THIS EVERY YEAR, HOW ARE BRICK-AND-MORTAR STORES DOING COMPARED TO ONLINE RETAILERS?

eBAY , AMAZON , ETSY ?

>> DURING THE PANDEMIC THERE WAS A HUGE SHIFT WITH ONLINE SHOPPING BECAUSE EVERYONE HAD TO STAY AT HOME WHEN THE STORES WERE SHUT DOWN.

THAT CONTINUED A TREND THAT SAW ONLINE SHOPPING REALLY TAKING GROWTH AWAY FROM TRADITIONAL BRICK-AND-MORTAR RETAILERS BEFORE THE PANDEMIC.

THERE HAS BEEN A LITTLE BIT MORE OF A SHIFT TO BRICK-AND-MORTAR RETAILERS, I DON'T THINK THE OVERALL TREND IS REVERSING DRAMATICALLY.

>> THAT COULD BE PROBLEMATIC FOR MICHIGAN AVENUE, STATE STREET, OTHER RETAIL CORRIDORS.

THAT DO SEE VACANCY.

>> YEAH.

THEY HAVE A LOT OF CHALLENGES INCLUDING PERCEPTIONS THAT CRIME IN THE CITY IS OUT OF CONTROL.

DON'T WANT TO GO DOWNTOWN.

>> I WANT TO TALK ABOUT THAT.

I WANT TO GET TO THE MAJOR GROCERY STORE MERGER, KROGER ANNOUNCING PLANS TO MERGE WITH ALBERTSON'S FOR $29.. COMPANIES OF JEWEL, MARIANO, MAJOR FOOD RETAILERS IN CHICAGO.

IS THERE A CHANCE THIS DEAL DOES NOT GO THROUGH DUE TO REGULATORY OR MONOPOLY ISSUES THAT MIGHT ARISE?

>> IT IS POSSIBLE, IT IS POSSIBLE IT COULD BE BLOCKED.

IT IS ALSO POSSIBLE THE FT SEA WOULD LOOK TO SEE WHAT PROPOSALS THEY ARE MAKING, IT IS MORE THAN THE COMPANY THINKS IS WORTH IT , THEY WOULD WALK AWAY FROM THE DEAL.

IT IS POSSIBLE IT WON'T HAPPEN.

>> WE KNOW THEY MIGHT HAVE TO SELL OFF OR CLOSE A CERTAIN AMOUNT OF STORES REGARDLESS, WHAT DO YOU THINK THAT WILL MEAN FOR THE CHICAGO AREA?

WHERE MIGHT THOSE STORIES BE?

>> IT IS EXTREMELY LIKELY WE WILL SEE CENTERS IN THE CHICAGO AREA IF THE MERGER GOES THROUGH BECAUSE OF THE DEGREE OF OVERLAP HERE.

GETTING MORE DETAILED IN TERMS OF WHERE THOSE ARE REQUIRED OR SPECIFIC FTC, WHAT STORES OR AREAS NEED TO SEE THAT, A LITTLE BIT EARLY TO SAY THAT.

DOES NOT NECESSARILY MEAN THE STORE WILL CLOSE BUT THERE IS CONCERN STORES THAT ARE SOLD OFF HYPOTHETICALLY WOULD NOT BE IN GOOD POSITION TO COMPETE AGAINST ESPECIALLY NOW MAJOR COMPANY LIKE KROEBER'S.

>> IS THEIR FEAR THIS COULD EXACERBATE THE FOOD DESERT PROBLEM IN CHICAGO, THE STORES LIKELY TO CLOSE, AREAS THAT CAN ILL AFFORD TO LOSE FRESH FOOD OPTIONS?

>> I HAVE HEARD THOSE CONCERNS FROM CUSTOMERS AND ANTITRUST FOLKS.

THERE IS DEFINITELY CONCERNED THAT GIVEN THE CHOICE, THESE COMPANIES WOULD CHOOSE TO FOLLOW STORES THAT ARE LESS ADORABLE OR PROFITABLE, THOSE WOULD BE STORES IN DISAFFECTED COMMUNITIES.

>> RECENT YEARS, YOU HAVE HAD GIANT CORPORATIONS LIKE WALMART, TARGET, ALL OF THEM EXPAND GROCERY OPTIONS IN THE CITY, DO YOU THINK THOSE COMPANIES WILL PICK UP SOME OF THE SLACK IF THE NEW MEGA KROGER ALBERTSON'S COMPANY DOES RESULT IN FEWER STORES?

>> IT IS POSSIBLE, REALLY HARD TO SAY WHO WOULD BE LOOKING TO BUY UP THESE STORES.

WHAT IS HAPPENING IN THE GROCERY INDUSTRY, THEY ARE FEELING THE PRESSURE FROM THESE LARGER RETAILERS LIKE WALMART, ON THE OTHER SIDE FROM SMALLER SMALL BOUTIQUE GROCERS LIKE CHICAGO , WHOLE FOODS.

IT IS HARD TO BE TRADITIONAL GROCERY RETAILER RIGHT NOW.

POTENTIALLY ONE OF THE REASONS THEY'RE LOOKING EMERGE.

>> ONE BIG TRAN THRALL SECTORS, THE LABOR MOVEMENT SEEMS TO HAVE MORE MOMENTUM THAN IT HAS IN DECADES.

THE PASSAGE OF THE WORKERS RIGHT MOMENT IN NOT GUARANTEEING THE RIGHT TO FORM A UNION.

DO YOU THINK THIS CONTINUED PUSH FOR UNIONIZATION AND RETAIL AND NONPROFITS AND ALL THE OTHER SECTORS CONTINUING HERE IN CHICAGO IN 2020 ?

>> IT IS HARD TO TELL EXACTLY WHAT WILL HAPPEN GOING FORWARD .

A LOT OF PUSHING AND PULLING GOING ON.

YOU HAVE ILLINOIS, HAS DRAWN LABOR COHORT.

YOU HAVE THINGS AROUND THE MIDWEST IN DIFFERENT POSITIONS.

YOU HAVE TO SEE HOW THINGS ROLL OUT MOVING FORWARD AND SEE WHAT HAPPENS WITH SPECIFIC MOVEMENTS , CERTAINLY SEEN WHAT IS GOING ON WITH STARBUCKS AND OTHERS, IT IS WAIT-AND-SEE , ENCOURAGED TO SEE WHAT HAPPENS IN ILLINOIS GOING FOR DRUG THE MIDWEST NATIONALLY.

>> DENNIS, REAL ESTATE GUY.

I WANT YOU TO WEIGH IN ON THE POSSIBLE KROGER AND ALBERTSONS MERGER.

THIS IS A LOT OF REAL ESTATE IN THE CITY OF CHICAGO A PERHAPS VALUABLE REAL ESTATE THAT COULD BE SHIFTING OR CHANGING IN YEARS TO,.

WHAT DO YOU THINK IS GOING TO HAPPEN ?

>> I'VE NOT LOOKED CLOSELY AT THE KROGER, THIS SITUATION.

IT IS ALWAYS TRUE THAT GROCERY STORES ARE ONE OF THE THINGS HOMEBUYERS AND RENTERS WANT TO HAVE IN THE NEIGHBORHOOD, THEY WANT TO HAVE CLOSE BY.

THERE WAS IN THE EARLY 2000S, WE OFTEN TALKED ABOUT THE MARIANO'S AFFECT.

IF THE MARIANAS CAME INTO A NEIGHBORHOOD OR SUBURB, THAT MARKET, THAT HOUSING MARKET WOULD SIZZLE A LITTLE BIT MORE.

IF NEIGHBORHOODS LOSE THEIR GROCERY STORES, THAT WILL CERTAINLY HAVE AN EFFECT .

HOW MUCH WILL BE MEASURABLE, WE DON'T REALLY KNOW BECAUSE WE WOULD HAVE TO WAIT AND SEE HOW MUCH HAPPENS.

>> ONE NEIGHBORHOOD LOSING GROCERY STORES, ENGLEWOOD, LOSING THAT WHOLE FOODS, WILL ANYTHING TAKE ITS PLACE THERE?

>> I DON'T KNOW.

WHOLE FOODS APPEARED TO BE A GOOD FIT AND IT IS NOT CLEAR WHAT MIGHT TAKE ITS PLACE .

>> SOME KIND OF LOCAL GROCERS FEELING IN.

TALIA, COVERING THE ISSUES WITH STARBUCKS AND SOME OF THEIR WORKERS TRYING TO UNIONIZE.

STARBUCKS IS ANNOUNCING IT WILL SHUTDOWN SOME OF ITS STORES THAT HAVE UNIONIZE IN THE CHICAGO AREA, ARE THEY SETTING THEMSELVES UP FOR LEGAL ISSUES, PERHAPS WITH THE NLRV.

>> THERE IS ONE STARBRICK STORE CLOSING DOWN IN OCTOBER FOR SAFETY ISSUES, WORKERS UNITED, THE UNION ORGANIZATION INCLUDING THAT STARTED UNIONIZED REALLY SLAMMED THE DECISION.

THE UNION SAYING, THEY HAVE FILED CHARGE ABOUT THAT.

IT KIND OF REMAINS TO BE SEEN WHAT THE NLRV WILL DO.

IN GENERAL, THEY HAVE ISSUED LARGE NUMBER OF COMPLAINTS , CLOSE TO 50 WITHOUT STARBUCKS BEHAVIOR ALLEGING THAT BROKEN THE LAW , INCLUDING CHICAGO, THEY ISSUED COMPLAINTS.

>> IT SEEMS BOTH SIDES ARE DUG IN.

WORKERS WILL NOT FOR UNIONIZATION FIGHTS AND STARBUCKS WILL NOT SLOW DOWN OF OPPOSITION.

HOW WILL THIS PLAY OUT?

>> IT IS INTERESTING TO SEE, I THINK IT IS HARD TO SPECULATE RIGHT NOW , THE NEXT SORT OF STEP IS GETTING CONTRACT FOR STORES THAT HAVE UNIONIZED, NATIONAL STRIKE OF CHICAGO LAST WEEK ABOUT BARGAINING.

IT WILL BE INTERESTING TO SEE NEXT YEAR HOW BARGAINING GOES, THERE ARE STORES ABLE TO WIN THEIR FIRST CONTRACT, THAT COULD HAVE A BIG EFFECT .

>> SPEAKING OF THINGS WITH A BIG EFFECT ON BUSINESS IN CHICAGO, IT SEEMS LIKE CRIME, TAXES HAVE STARTED IMPACT COMPANIES.

YOU CAN SEE TYSON, CATERPILLAR, KEN GRIFFIN LEAVING CHICAGO AND ILLINOIS.

THE CEO OF McDONALD'S AS IT IS COMMITTED TO CHICAGO.

HE GOES ACROSS THE WORLD, CHICAGO'S REPUTATION FOR CRIME AND HIGH TAXES IS CAUSING PROBLEMS.

JOE CAHILL , IF YOU ARE CITY LEADER , HOW WORRIED SHOULD YOU BE ABOUT ATTRACTING BUSINESSES HERE AND LOSING THE REMAINING ONES LEFT?

>> VERY WORRIED.

WHEN BIG-NAME COMPANIES KNOWN AROUND THE WORLD LIKE BOEING AND CATERPILLAR PULL UP STAKES AND LEAVE TOWN, REGARDLESS OF THE REASON, PEOPLE NOTICE AND HEAR ABOUT IT.

OTHER BUSINESS LEADERS HEAR ABOUT IT.

THEY START TO WONDER IF CHICAGO IS A GOOD PLACE FOR BUSINESS, OPEN A NEW OFFICE, THAT SORT OF THING.

IT IS A MATTER FOR CONCERN , WE LOST THE BOEING HEADQUARTERS.

WE HAVE LOST CATERPILLAR.

THOSE WORK HEADQUARTERS OPERATIONS WITH A FEW HUNDRED JOBS.

TYSON, UNION WORKERS IN ARKANSAS, PULLED ALL OF ITS PEOPLE BACK TO THE ARKANSAS HEADQUARTERS.

THEY HAD RELOCATION OUT OF CHICAGO BY THE THOUSANDS.

AND THEN YOU HAVE SAID ADULTS.

INTERESTINGLY, CITADEL IS THE ONLY ONE YOU HAD A CEO ACTIVELY ENGAGING IN THESE ISSUES ABOUT CRIME AND TAXES IN CHICAGO.

>> TRIED TO RUN A CANDIDATE FOR GOVERNOR.

>> RIGHT.

WHEN HE ANNOUNCED THE MOVE, HE DID NOT DIRECTLY TIE IT TO THOSE ISSUES BUT HAD THOUGHT ENOUGH ABOUT THE ISSUES, HE THREATENED TO LEAVE IF THE ISSUES WERE NOT ADDRESSED TO HIS SATISFACTION.

IT IS SAFE TO CONCLUDE , THAT WAS PART OF THE REASON WHY THEY MOVED THE HEADQUARTERS OF THE HEDGE FUND DOWN, THAT WILL TAKE 300 PEOPLE OUT OF CHICAGO INITIALLY WITH JOBS .

LEAVE AROUND 700 OR SO FOR THE TIME BEING.

I SHOULD SAY , WE DID SCORE SOME WINS.

KELLOGG , WHICH IS SPLITTING UP AND MOVING WITH THE TAX DIVISION HERE.

ABBOTT LABS, BASED IN NORTH CHICAGO IS MOVING 450 PEOPLE DOWNTOWN.

AND GOOGLE IS BUYING THE THOMPSON CENTER.

IT WILL MAKE THAT , LOCAL CENTER WITH POTENTIAL OF HAVING 3000 JOBS.

>> THAT IS A PERFECT WAY TO TRANSITION.

>> THOSE ARE COUNTER MOVES.

>>> PERFECT WAY TO TRANSITION TO THE NEXT SEGMENT TALKING ABOUT GOOGLE.

REAL ESTATE SEGMENT, GOOGLE MAKES A BIG BET ON THE THOMPSON CENTER.

CHICAGO'S HOT REAL ESTATE MARKET TAKES A TUMBLE IN CHICAGO.

BELEAGUERED PUBLIC FINANCES.

DENNIS, MIXED SIGNALS WITH THE LOCAL HOUSING MARKET, NEW HOME SALES HAD A TOUGH MONTH LAST OCTOBER.

DO YOU THINK THEY WILL PICK UP ASSUMING LARGE INTEREST RATE HIKES ARE DONE?

>> IF LARGE INTEREST RATE HIKES ARE DONE, WE CAN EXPECT SALES TO STOP CALLING, WHETHER THEY WOULD PICK UP IS ANOTHER QUESTION.

HOME SALES HAVE BEEN FALLING MONTH AFTER MONTH QUITE A WHILE.

IT WAS HARD TO KEEP UP WITH THE PACE OF HOME SALES DURING THE PANDEMIC.

IT WAS INEVITABLE THEY WOULD SLOW DOWN AT SOME POINT.

INTEREST RATES SORT OF ACCELERATED THE DECELERATION, REALLY SPEEDED UP THE DECLINE IN SALES.

PRICES HAVE CONTINUED TO GO UP, THEY ARE GOING UP LESS AND LESS ALL THE TIME.

THEY ARE MOSTLY FLAT.

WE SORT OF HAD TWO COUNTER MARKETS AT ONE.

ONE IS PEOPLE WHO ARE DEPENDENT ON INTEREST RATES.

PEOPLE BUYING $600,000 AND BELOW.

GENERALLY VERY AFFECTED BY WHERE INTEREST RATES GO .

ESPECIALLY FIRST-TIME HOMEBUYERS BUYING UNDER 400,000, THEY HAVE ALL BUT DISAPPEARED OUT OF THE MARKET.

WEALTHY PEOPLE, PEOPLE OF MEANS BUYING ABOVE 1 MILLION , ABOVE 5 MILLION, ABOVE 20 MILLION, TWO $20 MILLION SALES THIS YEAR, THOSE PEOPLE HAVE CONTINUED TO BUY AT AMAZING RATE EVEN THOUGH, BECAUSE THEY ARE IMMUNE TO INTEREST RATE INCREASES.

WE STILL HAVE WHITE-HOT MARKET FOR PROPERTIES OVER $4 MILLION.

BELOW 600,000, IT HAS ALMOST PARALYZED.

>> THESE ULTRALUXURY RESIDENCES PEOPLE ARE EATING A., ARE THESE FOLKS LIVING IN THESE PLACES OR ARE THESE INVESTMENT PROPERTIES ?

>> FOR THE MOST PART, I CAN'T FIND EVERY UPPER , THEY ARE PEOPLE BUYING TO HAVE A HOME.

[ INAUDIBLE ] A LOT OF MONEY, I'M DIVIDING , ALMOST EVERY TIME EVEN IF I ONLY BUY ONE, WINNETKA, I HAVE SOMETHING IN COLORADO, CALIFORNIA.

FOR THE MOST PART, THESE SEEM TO BE PRIMARY ADDRESS PURCHASES.

THESE NUMBERS, I DON'T KNOW IF YOU HAVE THESE NUMBERS IN FRONT OF YOU , IN THE FIVE YEARS PRIOR TO THE PANDEMIC , THERE WAS AVERAGE OF 51 HOME SALES OF $4 MILLION OR MORE.

IN 2021, THERE WERE 100 WANT UP FROM AVERAGE OF 51.

SO FAR IN 2022, WHICH IS NOT OVER YET, WE HAD 120 HOME SALES OF $4 MILLION OR MORE.

COMPARED TO THE LONG-TERM AVERAGE OF 51.

THESE NUMBERS ARE UNBELIEVABLE.

ONE OF THE REASONS IT IS HARD TO LOOK AT THE DROP IN SALES, LOOKING WHERE PRICES ARE GOING , THERE ARE SO MUCH ACTION AT THE TOP OF THE MARKET, SO LITTLE ACTION AT THE BOTTOM.

IT MAY BE THE NUMBERS, PRICES ARE GOING UP I REALLY PULLED UP BY THE AFFLUENT PEOPLE.

>> THEY COULD BE INFLATED BY THAT WHITE-HOT SUPER LUXURY SECTOR.

TRUDY SINGH, BIG TRANSACTION ABOUT TO HAPPEN, GOOGLE WILL GO TO THE THOMPSON CENTER AS JOE MENTIONED EARLIER.

THEY WILL RENOVATE IT, IT WILL BE ONE OF THE HEADQUARTERS.

IS THIS A CATALYST FOR THE CITY BUSINESS DISTRICT?

>> I THINK THE THOMPSON CENTER SALE WAS BIG NEWS IN CHICAGO, SOMETHING GOVERNOR PRITZKER AND HIS ADMINISTRATION WORKING ON SINCE HE TOOK OFFICE OR SHORTLY THEREAFTER, CERTAINLY PROMINENT LOCATION IN THE CITY.

MAYOR LIGHTFOOT HAS SAID THAT PARTICULAR LOCATION, ONCE RENOVATED, I THINK IT IS SUPPOSED TO BE AROUND 2026, ACCORDING TO WHAT GOOGLE HAS INDICATED WHEN RENOVATIONS WILL BE FINISHED AND PEOPLE START TO OCCUPY IT.

MAYOR LIGHTFOOT HAS SAID, IT COULD BE SOMETHING LIKE 3000 JOBS IN THAT LOCATION.

THAT IS A LOT OF JOBS.

>> A LOT OF JOBS FOR THE BALLY'S CASINO WHENEVER THAT GETS BUILT ALONG THE RIVERFRONT.

DOES ANYONE KNOW WHEN THE TEMPORARY CASINO IS ?

LOOKING AT THE PROPOSALS FOR THE PERMANENT CASINO, THEY WILL MOVE INTO THE MEDINA TEMPLE , IS THAT SUPPOSED TO HAPPEN IN 2023?

I WILL TOSS THAT OUT TO ANYBODY.

DON'T ALL ACT AT ONCE.

WE DON'T EXACTLY KNOW.

HOW ABOUT THE FINAL PRODUCT, THE PERMANENT VALLEY'S CASINO.

DO WE ANTICIPATE , DENNIS RODKIN, WILL THAT CATALYZE THE CHICAGO RIVER ?

>> I THINK IT PROBABLY WILL.

GOING INTO AN AREA NEAR A LOT OF BOOMING HOUSING MARKETS.

PULLS THE EDGE OF DOWNTOWN A LITTLE FARTHER, I SHOULD NOT SAY WEST BUT NORTHWEST, AND CREATE ANOTHER TENTPOLE AROUND WHICH RESTAURANTS, CONDOS, ALL OF THOSE THINGS CAN DEVELOP OVER TIME.

CERTAINLY NOT OVERNIGHT.

>> I KNOW THE MAYOR AND CITY LEADERS ARE BANKING ON THAT HAPPENING.

WE ARE OUT OF TIME.

I HOPE YOU HAD A GREAT THANKSGIVING.

TRUDY SINGH, DENNIS RODKIN , TALIA SOGLIN, THANK YOU FOR JOINING US.

AND THANK YOU ALL, FOR JOINING US.

THAT IS IT FOR THE SHOW THIS FRIDAY NIGHT ON THE WEEK IN REVIEW.

I'M PARIS SCHUTZ.

HAVE A GREAT HOLIDAY AND WEEKEND.

STAY SAFE.

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