Southland Development Authority Hosts 2025 Investment Outlook For Chicagoland
[Tinley Park, Illinois, 2.4.25] – The Southland Development Authority (SDA) brought together key industry experts for its 2025 Investment Outlook For Chicagoland. The event provided an in-depth look at the economy, including the economic trends shaping the Southland region and also the broader Chicagoland area. It also offered an array of insights into everything from workforce development to industrial real estate (notably, data centers), and investment opportunities in the new year.
SDA CEO Bo Kemp opened the discussion. Kemp started by reflecting on the Southland’s position representing 45 municipalities and approximately 700,000 residents across urban, suburban, and rural communities.
“The Southland is a microcosm of what you can see throughout the entirety of the country,” said Kemp. “We also happen to sit in the middle of the transportation hub of North America, the agricultural hub of the United States, and the metals and manufacturing hub of the United States. So we think we’ve got a lot of assets going for us.”
Key Takeaways from the Investment Outlook
Industrial and Commercial Real Estate Trends
Scott Duerkop of Jones Lang LaSalle (JLL) spoke on industrial real estate trends along with the shift toward data center development. Data center development is rapidly expanding due in large part to the ever-increasing demand for artificial intelligence, arguably the hottest buzzword of both 2024 and 2025.
“We're seeing data centers pop up across the country,” said Duerkop. “Certain areas of the country, like Virginia, are very active, probably the preeminent player in data center development these days.” Greater Chicago is poised for data center development as well in 2025.
Although investor interest is high, the rise of data centers presents significant challenges related to power supply and transmission issues. Duerkap stressed this as he explained energy constraints would remain a major factor in determining where and how these facilities can be built.
“We're being told regularly by power suppliers that four or five years is the norm for the amount of time that's needed to bring more power to these sites,” he said. “We're now also running into a generation issue, which is leading a lot of us to see reports about nuclear power coming back into the lexicon for ways to solve the problem of power generation.”
Workforce and Population Shifts
Hannah Loftus, Vice President of Research at World Business Chicago also shared insights on the 2025 Chicagoland economy. She focused on workforce and population trends such as unemployment, labor force participation, and industry growth.
“The suburban communities that make up the Southland have about 650,000 people compared to the metro area’s 9 million,” said Loftus. “Between 2010 and 2024, the Southland’s population declined by 7%, but looking ahead to 2029, the decline is tapering off compared to the metro area, where it’s accelerating slightly.”
Loftus made mention of changes in employment patterns. She said that certain industries like healthcare, logistics, and construction are projected to grow. Meanwhile, retail and manufacturing are expected to decline.
“We see home healthcare aides, nursing assistants, and motor vehicle operators as some of the fastest-growing occupations looking out to 2029,” she said. “On the flip side, manufacturing and retail jobs are expected to see declines.”
Investment Trends and Business Growth
An economist with the Federal Reserve Bank of Chicago, Thomas Walstrum, spoke about national economic forecasts. He keyed in on the clouds of uncertainty surrounding tariffs, inflation, and interest rates. He believes shifts and federal policies will continue to impact investment decisions in the Southland and across the country.
“I really want you to take away that there's a lot of uncertainty about how tariffs or other potential policy changes are going to play out and affect the economy in 2025,” said Walstrum. Inflation may tick up in 2025, given the uncertainty with respect to new federal policymaking.
On that note, while Loftus noted a slowdown in private equity and venture capital investment in 2024, she also showed trends suggesting a rebound in 2025. Most notably in artificial intelligence, financial technology, and clean energy sectors.
“In quarter four of 2024, a little under half of all the venture capital and private equity deals went to artificial intelligence and machine learning,” she said. “It’s really capturing a lot of the market right now.”
About the Southland Development Authority (SDA)
The Southland Development Authority is a nonprofit business organization launched in 2019 by business, civic, and political leaders from around the Southland who recognize the potential of the region’s people, businesses, and real estate. Our mission is to bring the resources and capacity needed to achieve transformative, inclusive economic growth for the south suburbs with a focus on investments in the Southland’s communities, industry, housing, and workforce.
