Story posted Thursday, February 4, 2010
Reason For Hope
Village Says New Business Interest Already Up After Release Of Gross Domestic Product Numbers
By TIM O'CONNOR Journal & Topics Reporter
The nation's better-than-expected Gross Domestic Product numbers were released only last week but Arlington Hts. officials are already seeing increasing interest in new restaurants and businesses because of the news.
The GDP is a measurement of the nation's total production of goods and services. According to a U.S. Department of Commerce report released Friday, Jan. 29 the GDP increased an estimated 5.7% in the last three months of 2009. That's a rise over the previous quarter increase of 2.2% and a stark improvement from the beginning of 2009 when the GDP declined 6.4%.
The numbers have sparked more interest in new businesses opening in Arlington Hts., according to Business and Development Coordinator John Melaniphy.
"Given the better-than-anticipated holiday sales there is much greater optimism than there was a year ago," he said. However, Melaniphy said it was too early to name any of those new businesses.
He said consumers make up about 70% of economic spending and the Department of Commerce report was foretelling of economic improvement.
Melaniphy said he was hopeful that new business interest would result in more stores and fewer vacancies in the village. The vacancy rate was 13% as of Dec. 1.
Office spaces had a 16% vacancy rate, while retail was at 13% and industrial at 9%.
"We'd like to fill some of those vacant spaces and it's been a very tough 2009 for all communities," Melaniphy said.
Arlington Hts. has struggled with large businesses moving out over the past few months. The Sheraton Hotel and CoCo Key Water Resort, the largest hotel in the village, shut down on Dec. 28 and the Gap clothing store at the intersection of Rand and Palatine roads closed at the end of January.
"We're extremely disappointed about the closure and we're working diligently to bring a replacement to the location," Melaniphy said.
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