Chicago: Central Loop’s changing tenant profile
Although the Central Loop has seen a wave of planned outward migration, there is a change occurring in this submarket’s tenant mix.
March 05, 2019
- Although the Central Loop has seen a wave of planned outward migration (1.4M SF of tenants moving out), there is another important story to be told about the change occurring in this submarket’s tenant mix. Despite the trend of financial services firms seeking newer and more efficient buildings, there is a strong cohort of creative and technology occupiers which prefer this more traditional and affordable submarket.
- Smaller, more nimble tenants benefit from the availability of creative and renovated Class B assets. Companies such as Cheetah Digital, Shure, Iron Galaxy and Narrative Science have chosen 1 N Dearborn and 125 S Clark, and they have created a deliberate link between their brands and their creative office space.
- Many Chicago tech companies have relocated to the Central Loop to accommodate rapid growth. Some examples are Origami Risk, SpotHero, Signal, Snapsheet, Active Campaign, Narrative Science, and PowerReviews. Coworking provider, Industrious, just announced its largest location to date at 231 S LaSalle. It reinforces the theme that repositioned assets can thrive in the submarket, despite broader trends.
Source: JLL Research