Chicago has seen 215% growth in flexible space since 2012
Whether you love it or hate it, flexible space dominates the office leasing market.
January 23, 2019
- Whether you love it or hate it, flexible space dominates the office leasing market. In Downtown Chicago, flexible space makes up 4.0% of the office inventory with a total footprint of 4.41MSF across 125 locations. Flexible space providers have entered into the premium office leasing market in downtown, which has resulted in more competition for traditional firms that lease this type of space such as: law firms, banks and financial service firms.
- The largest concentration of flexible space is in the West Loop with 22 locations, following close behind is River North with 21 locations and then Fulton Market with 17 locations. Fulton Market leads when a submarket’s total share of flexible space is compared against the total office inventory, which accounts for 9.0% in Fulton Market. Flexible space operators occupy 4.0% of River North and 1.0% of the West Loop.
- Coworking had a tremendous impact on Chicago’s office leasing market in 2018, which is already one of the strongest in the nation. WeWork recently opened their 515 N State location, which was about 50% occupied before they had even completed their build-out. Keeping on the topic of WeWork, they added a ninth location at 222 S Riverside in December with aggressive growth plans in 2019 and beyond.
Source: JLL Research