search

The Real Deal Logo

Trending

H-E-B snags 21 acres in Celina, hinting at development boomH-E-B snags 21 acres in Celina, hinting at development boomMarty Burger’s new venture sputters on takeoffMarty Burger’s new venture sputters on takeoffLawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aRent board’s 4% hike will “plunge” buildings into distress: landlordsRent board’s 4% hike will “plunge” buildings into distress: landlords
Commercial
Chicago

Not just WeWork: Chicago’s co-working footprint could hit 9M sf

Co-working firms will triple their space in the next 3 years, according to a Newmark Knight Frank report, but first there will be a slowdown

From left: Convene founder Ryan Simonetti, WeWork CEO Sandeep Mathrani, and Novel founder Bill Bennett (Credit: iStock)
From left: Convene founder Ryan Simonetti, WeWork CEO Sandeep Mathrani, and Novel founder Bill Bennett (Credit: iStock)

WeWork may have slammed the brakes on new leases following its implosion last year, but overall co-working space in Downtown Chicago is still forecast to nearly triple in the next few years. That echoes a nationwide trend.

A report from Newmark Knight Frank estimates the Chicago co-working space will grow to more than 9 million square feet in 2023, from about 3.2 million square feet last year, Crain’s reported, citing Newmark’s figures. That would account for an estimated 6 percent of all Downtown office leases, up from 2 percent last year, according to the report.

Large co-working firms with at least 500 employees are driving the recent growth, and will continue to do so, Crain’s reported, citing Newmark.

Sign Up for the undefined Newsletter

The report showed that WeWork — which now has 14 locations and over 1 million square feet in Chicago — has a 33 percent share of the market co-working market, followed by Novel Coworking’s 10 percent, Convene’s 9 percent and Industrious‘ 6 percent, according to Crain’s.

But there will likely be a near-term slowdown of new co-working space this year and next year, according to the report. Evidently, 2023 will be a very big year.

NFK’s prediction is in line with a recent Morningstar analysis, which predicts co-working in the U.S. will reach 360 million square feet by 2028, nearly four times what it is today. [Crain’s] — Brianna Kelly

Companies and People
WeWork