Guest Video – Gary Patchucki and The Terminal (update)

And… we’re back! Our video (7:35) features an update on progress at The Terminal in Chicago with Gary Pachucki of IBT Group.

More about how The Terminal is creating an amenity-rich mini-campus focused on nanotech, biotech and life sciences featuring a parklike setting. All in a convenient and commuter-friendly location!

Gary also hints at future projects that may incorporate flexible workspace options.

More to come!

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Transcription:

Wendy Spreenberg 0:00
Hi, I’m Wendy Spreenberg. I’m with YES! Your Exceptional Space, and we’re here with Gary Pachucki of IBT group that has property, The Terminal on Kostner in Chicago. Thanks for having us back.

Gary Pachucki 0:10
Thanks for coming out. You got a beautiful day in Chicago.

Wendy Spreenberg 0:14
Absolutely Great. We wanted to do a follow up from our interview back in October of 2021. And we want to know a little bit more about the space. How has it changed since about a year ago?

Gary Pachucki 0:27
Well, a lot of this project, this project has been very organic, we’ve made a lot of progress over the last couple of years in particular, over the last 12 months, we signed and moved in our first tenant, which is EeroQ, which is one of the leading quantum computing companies in the world.

And we finished our base work in building A and the other enclosure activities on buildings B and C, which should be done in the next couple of months. And then we’re starting to look at new tenants, we’ve got a couple of deals that we’re starting to exchange LOIs on and are cautiously optimistic about the future.

Wendy Spreenberg 1:07
Great. Well, a little bit about your tenant base here. What seems to be a bit of the profile of the tenants who are coming?

Gary Pachucki 1:15
Most of the almost all the tenants that we’re seeing are, we refer to them as high science tenants, chemistry labs, particle computing, we’re seeing several companies in that field. We’re seeing a large company that’s in the nano technology, high chemistry business. And that seems to be the primary direction we’re going.

Wendy Spreenberg 1:35
And why do you see that being the case?

Gary Pachucki 1:38
Good question. So I think when we started this project, over four years ago, we always had hoped that we could achieve this. We thought we had the right basis for it. We thought we could create an argument for why this was a good alternative location, and it’s looking as though it’s all coming to pass that people are understanding the location in and the advantages of being here versus being in Fulton market, for example.

Wendy Spreenberg 2:08
Yeah, or even in the Medical District where traffic is really congested and density factor now being a hotspot to be sometimes it’s great to be a little bit away from that.

Gary Pachucki 2:18
You know, it’s interesting. You and I were in event last night, and there were a number of people that are involved in those higher density markets, and they are starting to see people rethink, is that a place that they actually want to live in work? You know, they’re not the demand isn’t 100% right now, people are starting to rethink some of that stuff, and sometimes, just to your point, it’s nice to take a step away and see a neighborhood and things like that.

Wendy Spreenberg 2:43
So based on doing the project, what has either surprised or delighted you about the project?

Gary Pachucki 2:49
Well, it’s always good news, when you get tenants. We seem to be the flow of traffic, so that’s making us very happy. I don’t think it’s it’s not a huge surprise, because of course, it’s what we’d hoped for, and it seems to be playing out. And, you know, the true test will be over the next few months as we continue on that path, finishing the other two buildings, and then hopefully sign a couple more leases.

Wendy Spreenberg 3:15
Excellent. Well, what do you think, based on all of this experience is the biggest selling point to The Terminal?

Gary Pachucki 3:22
Well, I think there’s a lot of things here, first of all, it’s a campus. So it’s unlike any of the other projects in the city, in that, you know, there’s some pathways, we got some green space, large green space areas, people can walk between the buildings, we’re in a neighborhood where there’s actually very attractive housing stock literally across the street. We’re also within a walking distance from emerging grade and elementary schools that are within four blocks. So, these are all things that we’re actually starting to hear from the tenants that they’re they understand that, and they’re looking at that and you know, could they buy a house here? And could their kids go to schools here? And will this evolve? And I think that’s exactly the path we’d hoped for?

Wendy Spreenberg 4:06
Well, you planted the flag, so I think that things are going to be changing, hopefully, dramatically, but

Gary Pachucki 4:13
Everything’s a process.

Wendy Spreenberg 4:14
You bet. absolutely. Are there any future features that we don’t see today that you’re gonna be having?

Gary Pachucki 4:20
You know, I think as we flesh the project out, we’d like to see some more amenities here. And I think that we’d like to expand the footprint of the project if we can over the next few years. And so we’re already starting to look at that because I think as we start to, you know, plant a flag and then you start to move the center of gravity for the high science, life science and you know, innovative office space. I think the demand will step up.

Wendy Spreenberg 4:49
What kind of amenities do you want to incorporate?

Gary Pachucki 4:52
You know, I think right now we’ve got outside space we got we’re trying to get into more food trucks, right. We actually have a lot lot of restaurants on North Avenue, but they’re for fairly, on the numbers side the scope is limited. And so we’re trying to see if we can induce that we’re looking at having a fitness facility on site. But I think the thing that people really look for, you know, you look in a lot of buildings, people have large fitness facilities, but typically nobody’s in those facilities, right. And as you know, work habits change, people are staying less in their space or coming in doing their job and then leaving. So they’re not, you know, dawdling for two hours just to kill time in the health club. And so I think it’s just trying to create an environment that’s really attractive to people and do some social things, so people can have a break during the week and, and make this a more attractive work environment.

Wendy Spreenberg 5:46
Great. Do you see any effects of the hybrid schedule? Because your your tenants are in a different industry focus, so has the hybrid schedule born out here at The Terminal?

Gary Pachucki 5:57
That’s a good question because I think that’s all in process, you know, nation/worldwide, I think it’s less probably less impactful, it’s tough to do these jobs remotely. Not too many people have a reactor in their living rooms. And so it’s, it’s harder to do these jobs remotely. And I think the other thing that we’re hearing from the scientists we’re working with, and the collaboration is really the key as they start to work on these projects. It really takes multiple people working on the thing simultaneously. So I think that they may have different hours, but you’re gonna see more engagement in the office and lab space.

Wendy Spreenberg 6:40
Excellent. Yeah. Are there future projects beyond The Terminal that you want to share with us?

Gary Pachucki 6:46
No.

Wendy Spreenberg 6:47
Okay.

Gary Pachucki 6:49
You know, I think we’re premature

Wendy Spreenberg 6:50
To be determined.

Gary Pachucki 6:51
Yeah, we’re looking at a couple of other things. But we’re still in the early early stages here. But as I mentioned, I think that this is a footprint that can be expanded. And so we’re working on that on a regular basis.

Well, it’s a really exciting project. And if you haven’t come to The Terminal here in Chicago, you’ve got to check it out. Gary, please share a website that you’d like them to take a look at.

We’re at theterminalchicago.com. And, yeah, and we’re actually going to participate in Chicago Open House in October. So that’d be an opportunity for people to come and see the facility and network. So we’d love to have you out.

Wendy Spreenberg 7:29
And we’ll come back so that we can catch up.

Gary Pachucki 7:32
We’d be excited.

Wendy Spreenberg 7:33
Thanks so much, Gary.

Gary Pachucki 7:34
Thank you.

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