Chicago submarkets with more boutique fitness studios have slimmed down vacancy rates
Submarkets with access to health conscious & millennial targeted amenities tend to perform better than their counterparts that lack this type of retail presence
August 14, 2019
- Submarkets with access to health conscious & millennial targeted amenities (modern gyms, fitness classes, juiceries and sustainable food options) tend to perform better than their counterparts that lack this type of retail presence.
- Benefitting from the access to the amenities of a residential neighborhood – submarkets like River North and Fulton Market are attractive to office tenants and their employees alike. With ease of access to popular spots with the design and feel of the modern office, these pockets of the city have contributed to the popularity of the “work, live, play” environment. In Chicago, each Sweetgreen location has a fitness studio within a three-block radius.
- The synergistic relationship between modern office and health focused retail will continue to become more prevalent as the population becomes more dense in the urban core. Assets located in these communities will continue to drive occupancy down and rents up. Submarkets that continue to convert office into multifamily in the Central Loop and North Michigan Avenue will most likely follow suit in this trend of blurring the lines between clear business districts and home.
Source: Wall Street Journal, Google, ClassPass, JLL Research