JLL increases investment in suburban office brokerage team to accommodate market demand
With a growing millennial workforce moving to the suburbs, some businesses are modifying their workplace strategies to include suburban work options
CHICAGO, September 13, 2021 — To support leasing momentum in the Chicago suburban office market based on shifts in work patterns as employees return to the office, JLL is announcing the re-assignment of its Chicago Suburban Tenant Representation team to the JLL office located at O'Hare Plaza.
"We are seeing changes in our client's workplace strategy due to the extended effects of COVID and the accelerating shifts of many young professionals moving to the suburbs," said Andrea Van Gelder, JLL Suburban Tenant Representation Broker Lead. "More clients are considering a suburban option of work-near-home, and with suburban landlords offering aggressive rental rates and concession packages, we are seeing an increase in suburban interest from the city."
A recent study by the National Association of Realtors found that 54 percent of millennial homebuyers nationally have chosen to purchase single-family homes in the suburbs over the last year, while only 15 percent of millennials have chosen to purchase a home in urban communities.
The same holds true for the Chicago suburban market, which has seen a significant increase in millennials moving to the suburbs. Over the past three years, DuPage County has become one of the most popular relocation alternatives. The nearly 5,000 new residents who have moved to the county are predominantly millennials.
Alongside changes in homebuying locations, employees' workplace preferences are also shifting. This past year, JLL has reported that nearly 66 percent of office workers want to alternate between different places of work post-pandemic, including home and the office.
"With companies exploring the opportunity for a hybrid work model, the suburbs are becoming a more cost-effective option for employers," said Todd Mintz, JLL Chicago Broker Lead. "Not only are the suburbs attracting a younger and highly educated workforce, but the cost of living and rent is lower than in the city. Combined with the $18.19 per square foot difference between suburban and office rents, there is a unique opportunity for companies to provide office space closer to where top talent is moving."
According to JLL's Chicago Suburbs Office Insight - Q2 2021 report, Class A suburban offices generate 83 percent of the new leases executed this quarter, with 40 new and renewed leases being signed. This number is up from 38 during the first three months of the year. Since the pandemic, the flight-to-quality trend has been at the forefront of strategic re-entry discussions as Class A offices have accounted for 66 percent of the new deals executed since March 2020.
For more information, please visit jll.com/Chicago.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.