McDonald’s is not moving to downtown Chicago

Newspaper headlines have claimed that McDonald’s is moving its headquarters from suburban Oak Brook to “downtown Chicago.”¹ It isn’t. The move (if it happens) would be to the Harpo Studios site, which is at 1058 West Washington Boulevard. This is in a neighborhood that historically mostly contained industrial buildings and warehouses. These days, the largest and most solid of these have been converted into “loft” housing. More modest industrial buildings have been replaced by expensive midrise housing—or by parking lots. Here’s a map:

The large black circle shows the location of Harpo Studios. The heavy black line shows how Chicago’s central business district is defined by the Chicago city data portal. Most observers would probably say that it is somewhat overbounded, especially on the west. The green lines are CTA rail lines, and the green circles are CTA rail stations.

Here’s a photo of Harpo Studios that gives a sense of context:

Harpo Studios is on the left. The reddish building contains “lofts.” The fence on the vacant lot on the right has a sign advertising three-bedroom apartments to be built on the site that will cost “in the 800s.” There are still some industrial facilities operating within a few blocks of the area shown, but they’re disappearing fast. Three or four blocks away the old food-processing Fulton Market has partly become a district of expensive, fashionable restaurants. This area is not “downtown.” It’s a mile to the Loop proper, across a ten-lane freeway and along streets that carry a huge amount of traffic during rush hour. The official community area name is Near West Side. Real estate agents call it the West Loop.

Google has set up its Chicago offices in Fulton Market, and one of the implications of the newspaper stories is that the “West Loop” might become a new center of corporate headquarters. I wonder. Google is, obviously, different. It isn’t quite comfortable with a traditional corporate image. Its New York offices are in the old Port Authority Building in Chelsea, not far from the High Line and a couple of blocks from the extremely fashionable Meatpacking District. Chicago’s Fulton Market is sometimes known as the Meatpacking District too. It’s in some ways very similar to New York’s. It had comparable historical functions, and it’s now quite the place to go (although its housing is lower-density and much cheaper than New York’s). Google appears to have chosen its office locations to enhance its (fading) bohemian image. But McDonald’s? There’s something a bit odd here.

A suburban acquaintance once revealed that he thought that “downtown Chicago” referred to the area from roughly Wrigley Field to Congress Expressway within a mile or so of the Lake, a huge, largely residential area of which the CBD is a tiny part. It’s more or less the area where driving is difficult and free parking impossible. People who drive everywhere sometimes do not seem aware of distinctions within dense areas. You could argue that the area around Harpo Studios is a suburbanite’s dream urban location. Traffic moves more freely than it does in the Loop. There are still some open parking lots around. The sidewalks are not too crowded. On nice days middle-class people can be found eating in outdoor restaurants not far away. Could it be that a misunderstanding about the meaning of “downtown” explains McDonald’s’ location decision?

Of course, it’s wonderful for Chicago to acquire new corporate headquarters, as long as only a modest bribe had to be paid. Headquarters bring in tax receipts and prestige. There are also environmental factors to consider. McDonald’s’ old headquarters in Oak Brook is very difficult to get to by public transit. Harpo Studios is two blocks from an El station. It would be hard to argue that the move is a bad thing in any way. But it does make sense to be correct about its spatial significance.