Vacancy rates are up, as are the number of perks landlords willing to dole out. Consider asking for free parking.

Chicago rental vacancies are up and rent rates are down, according to Reis Inc. To be exact, in the fourth quarter 2009, vacancies hit 6.7 percent (up 1.3 percent [...]]]>

Vacancy rates are up, as are the number of perks landlords willing to dole out. Consider asking for free parking.

Chicago rental vacancies are up and rent rates are down, according to Reis Inc. To be exact, in the fourth quarter 2009, vacancies hit 6.7 percent (up 1.3 percent from the year-earlier period) and rates for one-bedrooms dropped 1.7 percent to $1,050 from the previous year. In sum, you can secure a hot pad and at a hot price. But don’t settle for just a slashed price tag, according to Apartment People marketing director, Maurice Ortiz. Read between the lines of your lease, and make sure to red-pencil in some additional amenities.

Free parking

If you’re not all that adept at the “find a street spot” game, especially during Cubs season, investing in a second home for your wheels will get pricey. An outdoor, uncovered space in downtown Chicago can cost anywhere between $150-$200 a month and a garage spot can run high as $350 a month, Ortiz warned. Brokers will first suggest apartment seekers consider ditching their vehicles. But if you’re not much of a Zipcar-user, consider asking your landlord to subsidize your spot.

“I think for a good tenant, being they have good credit and will be there for at least a year, tenants are willing to make that sacrifice,” Ortiz remarked on the latest cost-saving trend he’s noticed among customers.

Get low

Not much of a negotiator? Haggling can be easy as just asking.

“Right now anything goes,” Ortiz explained. “Renters should always ask, the worst thing they can say is ‘no.’”

To most efficiently combat a landlord’s price, canvass the market, so you’re well informed of the going price for properties in the neighborhood. If you bring evidence showing that similarly sized pads are marked down, your landlord could very likely consider matching that price. Also keep in mind, some building owners aren’t quite sure what an appropriate price should be.

“Oftentimes, they probably don’t know. It’s a good possibility that it may be overpriced,” Ortiz related.

Donna Urbikas of Prudential Rubloff has recently noticed some landlords willing to negotiate on the price of a security deposit, often dropping it to a half a month’s rent. However, such reductions vary unit-to-unit, if there is carpeting or a pet living on the premises, for example.

On the other hand, with spring, also comes the onslaught of new tenants who have graduated or are upgrading or downgrading from their current digs. So landlords may be less inclined to drop the rent. Just make sure you come equipped with a well-corroborated argument to effectively make your case.

“You’re not going to get anywhere by underbidding an owner,” Ortiz warned.

Rent furniture separately

Signing on for a fully furnished apartment is tempting, especially if you’re only going to be in town temporarily for school or work. However, furnished apartments are pretty much always more expensive than their unfurnished counterparts.

A Gold Coast one-bedroom apartment, for example, will usually be priced between $1,500-$1,600.  But if you rent the same apartment, with furniture, the price could jump as high as $2,200-$2,400.

The thriftier option?

First, rent your apartment. Then, seek out furniture separately.

Cort Furniture Rental and Brook Furniture Rental are two such businesses that can fill your pad with all your necessities for periods of three to six to 12 months. Some all inclusive packages run as low as $300-$400. If you’re only interested in the basics, the price can get marked down even further. Even if you’re someone who tends to jump on the bed, you’ll be covered for normal wear and tear and of course, fire, or flood damage. However, it’s unlikely that you’ll get away with trashing upholstery or furniture items.

If we compare the fourth quarter earnings results of the three apparel competitors we can see that Abercombie & Fitch Co. is struggling compared to its two competitors.  Both American Eagle Outfitters Inc. and Aeropostale Inc. have benefitted from consumers turning to more low-cost clothing apparel.  Abercrombie & Fitch kept its [...]]]>

If we compare the fourth quarter earnings results of the three apparel competitors we can see that Abercombie & Fitch Co. is struggling compared to its two competitors.  Both American Eagle Outfitters Inc. and Aeropostale Inc. have benefitted from consumers turning to more low-cost clothing apparel.  Abercrombie & Fitch kept its prices high during the recession, which took a bit hit on its sales.

The Pittsburgh-based retailer American Eagle took flight on March 10 when profits jumped 81 percent to $59.3 million, or 28 cents per share.  American Eagle posted earnings of 33 cents a share excluding one-time impairment charges related to the company’s Martin + Osa stores, matching the estimates of analysts polled by Thomson Reuters.  Sales for the period ending Jan. 20 increased 7 percent to $972 million.

Aeropostale Inc.’s fiscal fourth-quarter earnings rose 42 percent to $96.6 million, or 99 cents a share on March 11 from strong sales.  Sales rose 16 percent to $801.2 million.  The results beat a 95-cents-per-share prediction by analysts polled by Thomson Reuters.

On the other hand, Abercrombie & Fitch Co. didn’t perform as well as its competitors.  Abercrombie & Fitch Co.’s fiscal fourth-quarter earnings fell 31 percent as sales continued to decline.  Sales decreased 4.6 percent to $936 million.  Abercrombie & Fitch posted a profit of $47.5 million, or 53 cents a share, compared to $68.4 million, or 78 cents a share, a year earlier. Excluding losses earnings per share fell to 91 cents from $1.06.  This beat the estimate from analysts surveyed by Thomson Reuters, which expected 87 cents a share.

Is there any hope for the high-price teen apparel retailer?  Abercrombie & Fitch said it will be looking at closing U.S. stores that are draining its profits.

American Eagle also said it would be closing stores that have been a drag on its performance.  The company plans to close 28 stores in its Martin & Osa clothing chain and refocus on its core American Eagle brands.

However, in order to improve its sales Abercrombie & Fitch should look to reducing the price on its apparel.

MoneytalksMMM

How are your fellow Chicagoans saving money? Jeniece Pettitt talked to people in Daley Plaza to find out.

Polyus Gold's stock price has seen a slight bump on the London Stock Exchange. If they are able to merge with another company, the price could surge.

When a team is 7-57 and challenging for the worst record in the 64-year history of the NBA, it’s hard to see much hope on [...]]]>

Polyus Gold's stock price has seen a slight bump on the London Stock Exchange. If they are able to merge with another company, the price could surge.

When a team is 7-57 and challenging for the worst record in the 64-year history of the NBA, it’s hard to see much hope on the horizon. However, the New Jersey Nets, who need three more wins in 18 games to avoid attaining that dubious record, was recently named by Basketball Prospectus as the team with the brightest future in the league.

Some of that has to do with young talented players such as Devin Harris, Brook Lopez and Courtney Lee.  Some of that has to do with the fact that they have enough cap space to sign a big name free agent to a max deal.  But a lot of it has to do with the fact that they have a new owner, Mikhail Prokhorov, the second richest man in Russia with an estimated wealth of $13.4 billion, according to Forbes.  In September, his private investment fund, Onexim Group, made a deal to purchase an 80 percent stake in the Nets from its current owner, Forest City Ratner Companies Inc.  Prokhorov also negotiated for a 20 percent stake in the Barclays Center Arena, their future home in Brooklyn.

It’s this deal, as well as the savvy of Prokhorov, that makes his other companies, specifically Polyus Gold, a great investment idea in Russia.

They didn’t pick up enough golds at the Vancouver Olympics to please anyone back home, but Russia is a country rich in the precious metal as a resource.  Polyus, the largest producer of gold in Russia and Kazakhstan, appears poised to make a move to an international stage.  It trades under the symbol PLZL on the London Stock Exchange.  The Nets deal ties in with Polyus because Onexim owns stock in all of Prokhorov’s other companies.  Essentially, if one succeeds, they all succeed.

Prokhorov recently announced the company would attempt to merge with or acquire another company to enhance its global image.

At least one major analyst in Russia believes this to be an excellent strategy.

“Polyus Gold’s long term future could lie in a grand scale merger with an international gold miner, possibly done via an equity swap, which would likely be hailed by the market,” Mikhail Stiskin, a metals analyst at Troika Dialog in Moscow, wrote in a report in February.

Prokhorov has a lot of irons in the fire, and his ability to diversify is another reason why Polyus is such an attractive company.  In addition to Polyus and Onexim, Prokhorov also owns UC RUSAL, the world’s largest aluminum producer, which just raised a $2.2 billion IPO.  The mogul focuses mainly on mining, real estate and infrastructure, but likes to dabble in other industries.

Last July, Prokhorov reached an agreement to buy a controlling stake in RBC Information Systems.  Prokhorov also just had a project to manufacture hybrid cars that run on both regular gasoline and liquefied natural gas approved by the Russian government.

Back in the U.S., excitement and optimism abound for Prokhorov and his ownership of the Nets.  Bruce Ratner, the current owner of the Nets, is a real estate man first and a basketball man second.  Prokhorov financed CSKA Moscow’s basketball, hockey and soccer teams, and helped Moscow to two Eurobasket championships.  Any positive effect he has on the Nets will transfer across the Atlantic to his Russian companies.

In a statement, Bruce Ratner, CEO of FCRC, said, “Mikhail Prokhorov and Onexim will be great partners for this project.  Our company has a long-standing commitment to Brooklyn, and I am thrilled that smart global investors appreciate the exciting economic potential here.”

Jacquelyn Ryan/MEDILL

If you’re feeling unsure about the U.S. stock market, try looking Down Under.

Australia has managed to successfully weather this global recession. The economy is so strong, in fact, that the Reserve Bank of Australia raised the cash rate, Australia’s overnight inter-bank interest rate, on March 2. The Australian Securities Exchange, the [...]]]>

Jacquelyn Ryan/MEDILL

If you’re feeling unsure about the U.S. stock market, try looking Down Under.

Australia has managed to successfully weather this global recession. The economy is so strong, in fact, that the Reserve Bank of Australia raised the cash rate, Australia’s overnight inter-bank interest rate, on March 2. The Australian Securities Exchange, the leading index, has responded accordingly.

The S&P/ASX 200 has been gaining on news of increasing retail sales, strong banking health and improved energy earnings.

“ASX is on track to deliver a better-than-expected full-year profit following a rapid rebound in investor confidence and surge in capital raisings, trading activity and demand for over-the-counter services,” reported The Australian on Feb. 19.

The ASX and Sydney Futures Exchange both beat market estimates last month, according to The Australian.

Australia ranked 10^th as the most attractive location for foreign direct investment between 2007 and 2009, according to the United Nations Conference on Trade and Development’s World Investment Prospects Survey.  The World Bank ranked the country ninth out of 178 countries for overall ease of doing business in 2008.

So if you’re thinking of investing, here are three stocks to ask your broker about.

• The Australian & New Zealand Banking Group

Australia ranked third in the world for soundness of banks in the World Economic Forum’s Global Competitiveness Report for 2009-2010.  Of the region’s banks, the ANZ is one of the largest. It has been performing strongly, posting gains despite small recent dips. ANZ has gained almost 10 percent in the last three months, with a closing price rising 0.5 percent to $23.94 on Wednesday.

The company recently received regulatory approval to acquire Royal Bank of Scotland Group PLC’s Singapore and Taiwan businesses, according to the Wall Street Journal.

“Taiwan is a key market in our Greater China strategy and the acquisition gives ANZ a substantial Taiwan business with more than 1 million customers and a sizable commercial and institutional client base,” ANZ’s chief executive of Asia Pacific, Europe and America operations, Alex Thursby, said in a statement.

The company said it is working toward becoming the leading bank in the Asia-Pacific region.

• BHP Billiton Ltd.

Australia is known for its strong mining industry. The mining company is a major player in the industry and has turned a nice profit for their investors in recent days.

BHP Billiton has risen approximately 7 percent in the last three months, with a closing price dipping slightly by 0.4 percent to $43.24 Wednesday.  The central bank predicts the industry will continue to perform highly in the coming decade.

“BHP is expanding its Worsley aluminum operation in Western Australia, developing six oil and gas projects, adding extra capacity to its iron ore mines in Western Australia and doing initial work on its Jansen potash mine in Canada. It’s also studying further coal, iron ore and alumina projects,” Businessweek reported.

IG Markets reported Tuesday:

“In a commodities report from Royal Bank of Scotland, forecasts and ratings for iron ore stocks were boosted after the broker upgraded its iron ore forecast to a 60 [percent] hike from 20 [percent] previously. BHP Billiton’s earnings forecast was upped by 7 [percent] for FY10 [fiscal year 2010] and 19 [percent] for FY11 [fiscal year 2011], with its target price lifted to $57.10 from $51.59 and its buy rating maintained. The broker said it continues to believe BHP is one of the best-placed miners to take advantage of the global economic recovery and the subsequent increase in commodity demand.”

• Woolworths Ltd

The supermarket-retail giant in the country has been strong, posting growth of 11.4 percent in its earnings last month.

In fact, retail sales are forecast to grow to 3.8 percent in 2011 to 2012, from 2.6 percent in 2009 to 2010, according to Access Economics research.

Its New Zealand supermarket division has been performing well, helping to push the company’s earnings before interest and tax up 20 percent in the recent period.  The company is also refurbishing stores in Australia and New Zealand in its consumer electronics division that are also anticipated to be financially fruitful.

The company did recently announce it would be buying back AU$400 million (or about $355 million US) in stock.

IG Markets reported Tuesday:

“Australian business owners are as confident as they’ve been in months, suggesting the recent RBA [Reserve Bank of Australia] rate hikes haven’t dampened spending or growth too much in 2010. NAB’s [National Australia Bank] business confidence index rose four points to +19 from January, while business conditions increased five points to +8. In a statement from National Australia Bank, they said the February survey results suggest that growth momentum in early 2010 is still substantial, albeit somewhat below the very strong demand conditions of late 2009.”

It’s not just the stocks that are performing well. The country’s financial shape continues to improve as well.

The unemployment rate fell for the third consecutive month in December, making it the largest rise in employment since December 2006. The unemployment rate fell 0.2 percentage points to 5.3 percent on a seasonally adjusted basis, according to the Australian Bureau of Statistics.

The country’s gross domestic product grew 0.5 percent in September over the previous period and 1 percent year-over-year, according to recent numbers from ABS. Consumer price index also increased 0.5 percent in September over the previous period and 2.1 percent over the last year.

At the Voices for Illinois Children’s recent “Illinois Kids Count 2010 Symposium” at The Standard Club in Chicago, a panel discussion revolved around the topic of families in a time of economic crisis.

It was a gloomy outlook for children in the state as Illinois deals with high unemployment, poverty and enormous deficits.

Illinois [...]]]>

At the Voices for Illinois Children’s recent “Illinois Kids Count 2010 Symposium” at The Standard Club in Chicago, a panel discussion revolved around the topic of families in a time of economic crisis.

It was a gloomy outlook for children in the state as Illinois deals with high unemployment, poverty and enormous deficits.

Illinois Kids Count is a project of Voices for Illinois Children, an organization committed to improving the lives of children. The nationwide project is supported by the Annie E. Casey Foundation and uses the best available data to measure the economic, social, educational and physical well-being of children. And this year’s data are quite depressing.

The Voices for Illinois Children President Kathy Ryg started out the presentation, which attracted more than 230 guests, with information about child poverty.

“The most visible signs of the recession do not really reveal the full impact on children and families,” she said. “Children are the hidden causalities and voiceless victims of these difficult economic times.”

Poverty levels in 2008 for a family of four is an income less than $21,800 or a family of two earning less than $17,300 a year. Ryg said that based on information from previous recessions, child poverty will increase in Illinois and will continue to increase as the nation recovers. The Illinois poverty rate for 2008 was 17 percent, with 530,000 children affected.

“Projections indicate that child poverty will continue to rise, to 650,000 Illinois children,” Ryg said. “More than one in every five Illinois children will be living in poverty just two years from now.”

If that isn’t depressing enough, the Illinois Kids Count data shows that when a parent loses a job, a child is more likely to struggle in school, more likely to repeat a grade and more likely to have behavior problems.

There is also evidence that shows homelessness is on the rise. Currently there are 25,000 homeless children enrolled in Illinois schools.

The good news is there are programs in place that have proven to help these families. According to a 2009 analysis by the Center on Budget and Policy Priorities, food stamps and the federal earned income tax credit are the most effective programs in lifting children above the poverty level.

Ryg said that about half of food stamp recipients in Illinois are children. In 2009 there were 1.5 million residences using food stamps, an increase of 22 percent from 2007.

Michelle Saddler, secretary of the Illinois Department of Human Services, said that food stamp requests have gone up so drastically during the recession that their timeliness processing requests has declined. But luckily, improvements are on the way.

“We’ve just recently received federal funds to hire additional people and pay workers overtime for processing food stamp applications,” Saddler explained. “We also have Web stamps and telephone stamps now, so people don’t have to go into the office anymore.”

Ryg listed off other successful programs already in place in the state, such as preschool programs, child welfare reform, health insurance coverage and child-care assistance programs. But plunging revenues and a large debt could hurt decades of progress, she warned.

“The recession and the state fiscal crisis put these investments with proven outcomes in significant jeopardy,” she said. “Some programs have already experienced substantial budget cuts and more are clearly on the horizon. It is heartbreaking that children will struggle with these effects in their lifetime.”

Rick Mattoon, senior economist at the Federal Reserve Bank of Chicago, explained that there is not a light at the end of the tunnel, saying that because of the uniqueness of this recession, the nation will experience slower growth than normal in the upcoming years.

“There is a false sense of comfort when the economy is recovering and this makes budgeting very difficult,” Mattoon said. He added that Illinois’ biggest problem is its considerable debt. “Even if you look at significantly increasing tax revenue in the state, almost all of that revenue would have to go to paying down that debt before you look at any service expansion.”

So what can we do to keep these programs from getting slashed? Though there were not any tangible solutions discussed at the symposium, there were some ideas. Mattoon said it is the responsibility of state, federal and local governments to all work together to make sure children do not suffer from budget cuts.

“The notion of talking about children as investments is important,” he said. “The private sector and foundation sector have to really step in as well.”

John Bouman, the president of the Sargent Shriver National Center on Poverty Law, said that it is not just the recession that has caused problems for these programs. It is also the fact that there was a “fragile foundation” in Illinois before the recession hit.

“Tax reform and tax restructuring has to be a part of the discussion,” Bouman said. “There is a depressingly deep crisis, but there is a way through it. We need forthright, courageous and honest leadership to do it. We can’t wait. We have to do it now.”

In the current economic climate, baseball fans are hesitant [...]]]> Major League baseball’s opening day is less than a month away. Chicago Cubs and White Sox fans are as excited as ever to see their teams take the field in early April, but they may be planning to do so from the comfort of their own homes.

In the current economic climate, baseball fans are hesitant to spend the money it takes to attend a live game.

The cheapest available Cubs tickets for the upcoming season on StubHub.com, a widely used online ticker broker, are $4 infield upper deck seats at the April 29 game against the Arizona Diamondbacks. They are some of the least desirable seats at Wrigley Field, and they are for a Thursday game that begins in the middle of the work day. There are few other games for which the cheapest tickets begin around that price and the same seats to a game between the Cubs and St. Louis Cardinals on July 23 cost over $60.

A trip down to the South Side’s Cellular Field offers little relief. The cheapest available tickets are $6 dollar in-field upper deck seats to see the White Sox play the Kansas City Royals on Tuesday, May 4. Neither the seats nor the Sox opponent that night are particularly desirable. And, remember, that is the cheapest ticket available all season long; attending one of the other 81 home games this season will cost something more than that, most likely a good bit more.

What are Chicago-area baseball fans who were hoping to tighten their belts while still taking in America’s pastime to do?

Children enjoying themselves at a Gary South Shore Railcats game. Photo provided by the Railcats.

They might want to look into teams like the Gary South Shore Railcats, Shaumburg Flyers, and Windy City Thunderbolts– independent professional teams that call the greater Chicago metropolitan area home.

“A lot of our fans are baseball fans in general,” said Dave Salvi, manager of advertising and promotions for the Railcats. “I would say that a vast majority of our fans view us as a much better option monetarily in the region.”

Tickets to U.S. Steel Yard, where the Railcats play, begin at $7 but only go up as far as $10. Remember, that $7 to sit in a ballpark that holds just over 6,000 people, not in the upper decks of 40,000 stadiums like Wrigley and Cellular Field.

“I think they view the Cubs and the Sox as a luxury, not an everyday thing,” said Salvi. “I think we have established ourselves as a brand that is affordable, not just great baseball.”

“It’s affordable family entertainment,” said Scott Boor, assistant general manager and director of ticket sales for the Flyers. “Tickets range from $5 to $12”

The game’s best plays may not end up on ESPN, but at independent baseball parks around Chicago the grass is just as green, the beer is just as cold, and the tickets are a lot less expensive?