The CTA plans to take a more businesslike approach to its retail operations and its first move will be to hand the management reigns over to Jones Lang LaSalle to oversee the leasing of 16,500-square-feet of vacant concession spaces.
Jones Lang LaSalle has been the CTA’s real estate provider since August of 2008. The firm has a five-year deal with the public transportation entity, 
with the goal of generating non-fare box revenue through real estate practices. So far, the firm has generated $32 million in revenue through land sales, a sublease at the CTA’s headquarters, ATM installations, and the Park and Ride program.
Repairing a subpar concession business was an obvious way to boost revenue, but, before JLL could take on the task in earnest, the CTA had to change its traditional retail practice.
A week ago, the CTA Transit Board passed an ordinance that allows retail/concession space on CTA property to be marketed for lease on the open market. Previously, the CTA relied on the RFP process, which can sometimes take months to complete.
“The RFP process is cumbersome at best,” says Kurt Little, head of public institutions for JLL. “Now, we can go utilize a competitive bidding process, quickly review and make recommendations. The CTA has ultimate approval (on tenants).”
The new process has already spurred activity. Little says that since the ordinance passed, JLL has received interest from 400 separate parties.
It could be a very competitive process for the 19 spaces that are currently available. The spaces vary in size from station to station, from the smallest at 55 square feet in the Montrose station at 1817 W. Montrose, to the largest at 8,775 square feet in the Wilson station, 4620 N. Broadway.
Some of the sites are move-in ready, while others may require light to moderate improvements. However, there is a segment of the spaces that will require significant work and possibly a “complete redesign,” says Little.
The firm is targeting a broad group of users. New leases will include the traditional fast food and convenience providers, but neighborhood businesses, such as dry cleaners, could become part of the mix as well.
“We might see some local, neighborhood operations that would like to expand,” says Little. “We have also received interest from national firms looking to take up to 10 spaces. They want the branding and they will bring investment capital to the projects.”
A complete list of available spaces may be found at www.ctarealestate.com.
