For retail success today? Smaller is better

Nando's Peri-Peri  is one fast-casual restaurant that is in growth mode.

Nando’s Peri-Peri is one fast-casual restaurant that is in growth mode.

by Dan Rafter

Midwest Real Estate News recently spoke with Jeff Berta, senior director of real estate development with Chicago’s Structured Development, about the state of the retail sector. Berta said that the retail segment is on the rise, with smaller retailers especially doing well today. 

Midwest Real Estate News: In general, how strong is the retail segment today?
Jeff Berta: Retail is definitely trending up. It is mirroring the national economy, which is also trending up. In Chicago and in the Midwest, retailers have generally been more conservative. So the retail market in this part of the country has been steadier than it has been in other parts of the country. Yes, online shopping continues to grow. But brick-and-mortar retail is still important and still healthy.

MREN: What are you seeing when it comes to retail rents?
Berta: Retail rents went down coming out of 2013 but are trending back up now. Overall, that mirrors the general economy. For the last three years, the national economy has trended up. It’s trended up more slowly than some would like, but the direction has been positive. The idea of slow growth is not necessarily bad. When you look at it from the perspective of tenants and the activity of tenants, though, most of the growth today is happening with smaller tenants as opposed to the larger retailers. If you look at activity in the big-box segment, it is very slow. If you look at smaller tenants, especially in food service, activity is a lot stronger.

When you look at the growth patterns, you’ll see that the growth is very, very small on the big-box side. Growth on the smaller-tenant side is much greater. If you just look at retail development in Chicago, you will generally see a much greater growth on the retail side for smaller tenants, too. It’s a consistent trend.

MREN: What about when it comes to locations? What type of locations are retailers seeking out today?
Berta: In today’s world, retailers are increasingly seeking out urban locations. Suburban retail development is definitely slower. That’s not to say that there isn’t any new retail development in the suburbs. There are select suburban markets that are seeing stable retail growth. But by and large, especially for ground-up or new retail development, there has lately been a significant focus on the urban side of things.

MREN: What type of retail uses are most in demand right now?
Berta: The fast-casual end of the food sector is especially strong. You are seeing chains such as Nando’s Peri-Peri performing quite well. The fast-casual restaurants are expanding their retail footprints. Some apparel companies are also continuing to grow. But the largest demand is on the fast-casual side restaurant side.

MREN: What is behind this trend?
Berta: People being more health-conscious might be driving it a bit. But when it comes to our society today, we tend to be a bit more active. We are on the go more often, so we eat out more often. And more people when they are eating out, want something fast but that has more flavor than your traditional fast-food restaurants. You see it even with the traditional fast-food chains, many of which are trying to add healthier items to their menus, trying to appeal to that younger generation that eats out more. They are trying to keep up with the Chipotles and Nando’s restaurants of the world. It is the nature of our society that we don’t cook out at home as much. At the same time, there is a greater focus on food. Just look at all those cooking shows on Food Network. The fast-casual restaurants are a good choice for people who don’t want to cook as much at home but want to eat healthier food. This is a strong trend, and it will translate into more retail development for the smaller-tenant, fast-casual restaurants.

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RealtyTrac study: A gender gap exists when it comes to home values

infographic_gender_gapby Dan Rafter

Is owning a home more valuable depending on your gender? According to a new report from RealtyTrac, it might be.

RealtyTrac today released a report showing that homes owned by single men on average are valued at 10 percent more and have appreciated $10,112 more since purchase than homes owned by single women.

According to RealtyTrac, the average estimated current market value of homes owned by single men was $225,226. That’s 10 percent higher than the average current market value of homes owned by single women, a figure that stood at $229,094.

Homes owned by single men have gained an average of $63,921 since they were purchased, a 33 percent return. That figure is 16 percent more than the average $53,809 gain from homes purchased by single women, a return of 31 percent.

What is behind these numbers? Daren Blomquist, senior vice president at RealtyTrac, said that women still earn less than men, 19 percent in 2015 according to the Bureau of Labor Statistics. This gives them less purchasing power than men when it’s time to buy a home, Blomquist said.

Because women are buying less expensive homes on average, the residences that they own are not worth as much on average as the homes bought by men who average higher incomes.

The gender gap only widens the longer people own homes. RealtyTrac found that homes owned by single men for at least 15 years have an average current market value of $288,912. That is 17 percent higher than the average current market value of $240,166 of homes owned by single women for at least 15 years.

The gender gap in housing varies by state. The average values of homes owned by single men averaged 14 percent higher in the District of Columbia, the region of the country in which the disparity of home values of residences owned by single men was the highest. Wisconsin, where homes owned by single men averaged values of 12 percent higher than those owned by single women, had the fourth-highest gender disparity.

There were three states, though, in which the average values of homes owned by single women were higher than those owned by single men, and two of them were in the Midwest, Kentucky and Kansas.

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Seniors housing is booming, and showing no signs of a slowdown

Joseph J. Duffy Co. of Chicago is building Azpira Place, a supportive living facility for seniors in Lake Zurich, Illinois.

Joseph J. Duffy Co. of Chicago is building Azpira Place, a supportive living facility for seniors in Lake Zurich, Illinois.

by Dan Rafter

The seniors housing industry has never been stronger, at least according to a new survey that reports a record number of transactions and nearly $20 billion in institutional sales in this commercial real estate segment.

According to the CBRE Senior Housing Investor Survey & Market Outlook, occupancy in seniors facilities is at its highest point since 2007. At the same time, 2015 ranked as a record-setting year for sales and institutional transactions, according to CBRE’s study.

CBRE reported that the seniors housing sector closed another record-setting year in 2015 with 514 institutional transactions closed and $18.7 billion in institutional sales. These numbers came despite a slowdown in the fourth quarter. The increase in volume from 2014 was 4.5 percent.

Plenty of investors remain interested in seniors housing. The CBRE survey found that 58 percent of investor respondents hope to increase their exposure to seniors housing.

The number of seniors housing units under construction had increased from 22,975 at the end of 2012 to 48,903 as of the fourth quarter of last year. With an average development period of 12 to 15 months, a significant portion of this supply will come online this year.

No slowdown on the horizon

Chicago-area CRE experts say that they expect the seniors housing market to remain a busy one as 2016 moves into the summer months. The reasons? There is still plenty of demand for seniors housing facilities in Chicago and its suburbs. And there is enough uncertainty with the U.S. stock market and other investment opportunities to convince nervous investors that seniors housing remains one of their safest bets.

Jason Stroiman, president of Chicago’s Evans Senior Investments, isn’t surprised that seniors housing remains such a strong segment. He points to the unpredictable nature of the stock market, with its ups and downs, as yet another possible positive for the seniors housing industry.

“The presence of volatility in the stock market may drive investors to the predictable returns of real estate investing,” Stroiman said. “Seniors housing was proven to be the most recession-proof real estate class during the Great Recession. As overseas investors pull out of global equity markets, they could potentially find a safe haven in U.S. real estate investment vehicles until the market turmoil plays out.”

Of course, the U.S. population continues to age, which is a critical driver for seniors housing construction and sales.

“The seniors housing market continues to show great promise as a long-term growth industry due to the underlying demographic fundamentals implicit in future demand,” Stroiman said.

Amenities that are in demand

Seniors housing facilities today, of course, bear little resemblance to the facilities of even a decade ago. Many seniors today are demanding the type of amenities you’d see in an upper-end hotel.

Chicago’s The Habitat Companies is the largest property manager for the Chicago Housing Authority, including many of its seniors housing facilities. And while public housing does differ from private housing, the residents of both types of seniors housing properties are increasingly looking for some of the same types of amenities.

Charlton Hamer, vice president for public housing for The Habitat Company, said that seniors today understand the negative impact of living a sedentary lifestyle. So they are increasingly looking for fitness rooms that can help keep them moving.

“Seniors want fitness equipment and open areas in which to exercise,” Hamer said. “This includes popular fitness classes such as Zumba. This space has yet to take precedence over game rooms, but is significant enough to acknowledge the shift.”

As in many apartments or hotels, the common areas of seniors facilities has grown in importance, Hamer said. The goal is to get seniors out of their rooms and interacting with their fellow residents in public spaces.

“There is a significant focus on common-area space that is inviting for social events, lounging and resident interaction throughout the day,” Hamer said. “As the weather gets warmer, residents also desire this social interaction outside in a well-manicured green space or designated seating areas in front of the building where there is great foot traffic to ‘people watch.’”

Chuck Taylor, director of operations with Lemont, Illinois-based Englewood Construction, agreed that common areas are becoming the hearts of modern seniors housing facilities. This is inspiring existing facilities, too, to take on renovation projects to modernize cafeterias, game rooms and lobbies.

“Existing seniors housing communities are revamping their amenity spaces to create more gathering places for extended family to visit residents,” Taylor said. “Common areas are being opened up and infused with more of a modern, welcoming feel, similar to what you might find in a boutique hotel lobby.”

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The evolution of office space: Goodbye boxy, hello artsy

Dan Earles

Dan Earles

By Dan Earles, Principal, Earles Architects and Associates

Today’s office spaces are increasingly being shaped by company culture, as businesses look to incorporate their corporate branding and values. This is a significant shift in mindset and part of the overall evolution of office space seen over the past 25 years since EAA first started working with landlords and tenants in Chicago.

The overly-structured, boxy corporate offices of the 1990s have evolved to become highly customized spaces that reflect each company’s goals for team interaction and company image.

This means plenty of open space, flexible workspace arrangements, and comfortable furniture groupings that help convey a company’s image and values. In essence, the workplace has become an extension of a company’s corporate branding and is playing out in several ways:

  • Logo colors and themes that flow through the office in carpeting, paint, artwork
  • Unique reception and conference areas that showcase company branding, achievements and innovation
  • Wayfinding that uses corporate colors and names to help move people through the office space

The office market also has seen a tremendous geographic expansion in the past 25 years, with

River North and, more recently, the Fulton Market coming into the mainstream as desirable office locations. Each different market sector provides businesses with plenty of opportunity to find an ideal space and add the level of customization needed to build employee loyalty, spur on productivity, and impress existing as well as prospective clients.

All these changes are also impacting the landlord market, as they look to maintain their buildings to the highest levels and add amenities that will attract and retain tenants. Many downtown buildings, from River North to Fulton Market to the CBD, are undergoing extensive redesigns or upgrades to the common areas and amenity packages. Some landlords are also rethinking how their buildings should flow to fit today’s collaborative office culture. They are being proactive about designing new space and speculative suites to increase leasing activity. All these efforts also contribute to the brand identity of the building, or building ownership.

While each office tenant is unique, there are other common themes driving tenants today in the various business sectors:

  • The need for efficiency in space planning. Many tenants have moved toward smaller work stations and/or offices to improve efficiencies. The large executive offices that were common in the 1980s and 90s are rarely included in office floor plans.
  • A desire for full service capabilities from business partners. This extends to space design and build out, as businesses are moving at a fast busy and often look for service providers that can deliver a comprehensive result. EAA, for example, added SEAATS, a commercial furniture division to fill that need for streamlined design and furniture selection services.
  • A focus on technology, ranging from conferencing solutions, monitors and screens, to wifi hotspots and “hot desk” options that allow for flexible use of space. Technology provides tremendous flexibility, allowing employees to connect remotely and easily move around the office to join in collaborative, team efforts.

These themes are taking place on all business sectors, from established technology tenants to start-up firms, and from law firms to financial and professional services firms. The past 25 years have seen many exciting changes in the downtown office market, ones that should continue to shape the business community for years to come.

Chicago-based Earles Architects and Associates (EAA) is celebrating its 25th anniversary. The firm provides architectural and interior design services, along with commercial furniture services, for a wide range of businesses including commercial offices, retail spaces and restaurants throughout Chicagoland and Northwest Indiana.

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Waterton’s Zettl: Pace of hotel construction remains strong in Chicago, across the Midwest

The former home of the AAA-Chicago Motor Club in downtown Chicago has been converted to a new hotel.

The former home of the AAA-Chicago Motor Club in downtown Chicago has been converted to a new hotel.

by Dan Rafter

Several cities across the United States stand to benefit from new hotel construction this year, according to the latest research from Marcus & Millichap, with Chicago leading the way in the Midwest.

And a local hospitality professional working the Chicago market also has good things to say about the hospitality industry in the city and its suburbs.

A strong industry

In its national hospitality investment forecast, Marcus & Millichap reported that 110,000 hotel rooms are scheduled to be completed this year across the country, while several thousand more rooms are ready for ground-breaking. According to the report, this all comes out to a 1.6 percent growth this year in the number of hotel rooms across the country, though most of these new rooms are hitting the nation’s largest 25 markets. This is the greatest yearly total of new hotel rooms in eight years.

Despite the new hotel rooms, Marcus & Millichap expects hotel occupancy rates to remain high. Marcus estimates that these occupancy rates will jump 30 basis points this year to 65.9 percent. The report cites a lower national unemployment rate and falling gas prices that are encouraging more consumers to travel this year.

This will result in a 5 percent increase in full-year RevPAR — revenue per available room — to $82.64.

The Midwest is expected to perform well this year, too, according to Marcus & Millichap. The company predicts that major hotel completions in Chicago and Ohio will lead to an increase of available rooms of 1.7 percent this year. If the region reaches this percentage, it would mark the highest annual growth of hotel-room supply during the current cycle.

Marcus is predicting, too, that hotel occupancy rates across the Midwest region will rise 30 basis points to 61.7 percent this year.

A bright future for hotels

Mark Zettl, chief operating officer for Chicago-based real estate management company Waterton, said that hotel construction is increasing not just in the center of Chicago but in its surrounding suburbs. This includes an influx of smaller, select-service hotels.

There is some worry, though, that certain segments of the Chicago market – especially downtown Chicago – are adding too many hotel rooms.

“Downtown is still robust when it comes to hotel construction,” Zettl said. “A lot of rooms are being added to the downtown market in Chicago. Look at what the area around the McCormick Place convention center area is producing alone. There is significant hotel development there.”

This isn’t unusual to Chicago, of course. Several major cities across the Midwest are adding hotel rooms at a fast pace. In many core cities, developers are turning older office space into hotel properties.

Chicago offers a good example of this trend. The 17-story Chicago Motor Club building in downtown Chicago, which once served as the home of the AAA-Chicago Motor Club, is now the Hampton Inn Chicago Downtown. MB Real Estate purchased the building, while Walsh Construction handled the construction work necessary to transform it from an office to a hotel.

Demand is still strong for hotel space, Zettl said. But it’s unclear how close developers are to having provided enough hotel rooms to meet this demand.

“The fundamentals are still pretty strong,” Zettl said. “Are we in the seventh or eighth inning of the cycle? How much longer do the fundamentals hold out? No one really knows.”

The majority of hotels being added to the hotel stock in downtown Chicago today are upscale, boutique-type properties, Zettl said. The last full-service hotel that was developed in Chicago is The Langham, at 330 N. Wabash in the city.

Outside of the city’s center, the select-service niche of the market has grown increasingly popular, said Zettl. Select-service hotels are facilities that usually lack a full-service restaurant or bar. These hotels, though, have increased the services they do offer throughout the years. Select-service hotels today often offer swimming pools, on-site fitness centers, continental breakfast and often a snack bar or limited beverage service.

“There is a lot of demand out there for select-service hotels,” Zettl said. “The customers appreciate the simplicity of the stay. Different brands have done a good job of differentiating themselves even in the select-service niche. They might offer free continental or full breakfast service. There might be a reception at night for the guests. Today, the room stay and amenities at select-service hotels are becoming more comparable to that at full-service luxury properties.”

Hotspots

In the suburbs, locations featuring a diverse workforce base and office markets with low vacancy rates generally are the areas seeing the most hotel construction outside the center of Chicago.

Suburbs such as Schaumburg, Oakbrook and Naperville are all seeing new hotel construction today, Zettl said.

But what is generally not being built anywhere are the 300-room full-service hotels with 2,500-square-foot meeting rooms, Zettl said. During the last cycle of these larger suburban hotels, municipalities such as Lombard, Wheeling and Schaumburg backed the construction of these facilities with their own funds.

That is not happening today, Zettl said.

“Those big full-service hotels are difficult to get off the ground,” Zettl said.

Instead, new hotels are often of the select-service variety with club-level exercise equipment in their on-site fitness centers, modern pool facilities and free breakfast areas.

The lobbies of these new hotels are bright and airy, bathed in natural light. They feature natural woods and grains. Lobbies are the heart of many of the newer hotels, as owners encourage guests to spend less time in their rooms and more time in a hotel’s common areas.

These lobbies often feature fireplaces and large-screen TVs. They have public-access computers and plenty of outlets for guests toting laptop computers.

“The lobbies have become engagement centers,” Zettl said. “They are very trendy and comfortable spaces, very relaxing. They are places that encourage you to lounge and relax.”

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Retail market a tale of two cities – thriving in downtown Chicago, mixed-bag in the suburbs

Alama Drafthouse, a high-end dine-in theater, is targeting the Chicago market.

Alama Drafthouse, a high-end dine-in theater, is targeting the Chicago market.

by Dan Rafter

Illinois Real Estate Journal recently spoke with Patrick Owens, senior vice president of retail advisory services in the Chicago office of Transwestern, about the strength of the retail market in Chicago. Here is some of what he had to say about the new retailers targeting Chicago and the suburbs.

Illinois Real Estate Journal: I know this is a broad question, but how strong is the retail sector today in Chicago and its suburbs?
Patrick Owens: It’s been a relatively sound retail market, especially compared to the days of the recession just a few years back. It’s really a tale of two cities, though. The city is extremely hot when it comes to retail, especially in markets like the Loop, Fulton Market and Wrigleyville. National credit tenants are expanding in the city. New ones are targeting the area. The suburbs are more of a mixed bag. The closing of Sports Authority will lead to opportunities in the suburbs. But it will also lead to more immediate vacancies.

IREJ: What are some of the national retailers that are targeting Chicago and its suburbs? What are some of the new retailers we can look forward to seeing here?
Owens: The new expansions are clustered in three segments, the restaurant, theater and fitness segments. There are many restaurants with hot new concepts coming to town. Raising Cane’s Chicken Fingers out of Dallas is a 265-unit chain that targeted Chicago about a year ago. They should be here soon. PDQ, a barbecue chain out of Tampa, is also targeting Chicago. We should see continued expansions of Miller’s Ale House, Starbucks and Panera Bread in the Chicago area. These new users are pushing restaurant rents to premium levels we haven’t seen before.

IREJ: You mentioned theaters, too. Are you seeing new theater developments coming to Chicago and its suburbs?
Owens: AMC Theaters continues to be the market leader in Chicago. But we are seeing new entrants such as Cinepolis, a theater chain from Mexico, and Alama Draft House, a dine-in brewery theater concept. Another chain that is targeting Chicago is Imagine, a theater chain out of Michigan. So we are seeing a very active theater market. You usually don’t see that many new theaters being built on a regular basis, but we are seeing plenty of deals under discussion. Existing chains are also investing in their theaters, like AMC did with its Block 37 theater. They are putting in new, more comfortable recliners and adding better menus. We are seeing a lot of evolution in the theater segment right now.

Cycling-based fitness center Flywheel Sports plans to expand in Chicago.

Cycling-based fitness center Flywheel Sports plans to expand in Chicago.

IREJ: And with physical fitness? What trends are you seeing in the Chicago area when it comes to new physical fitness retailers?
Owens: We are seeing companies such as Flywheel Sports, SoulCycle and OrangeTheory Fitness opening new locations in Chicago. These are some of the smaller fitness retailers that are expanding in the market. Planet Fitness is very active on the discount side. That retailer continues to roll out new locations throughout the market.

IREJ: Are you seeing any other retail trends here?
Owens: The mattress build-up has finally slowed down. With Sleepy’s and Mattress Firm getting together, we are hearing about rumored closures in that segment. We are also seeing steady activity among discounters. Ross Dress for Less is continuing its large Chicago rollout. Duluth Trading Company has already started construction on new stores in the Chicago market. Tuesday Morning continues to expand and reposition itself. Discount is definitely another area in which we are seeing some solid expansion.

IREJ: How about trouble areas? What type of retailers are struggling today?
Owens: The office-supply segment faces some real concerns with the Staples and Office Depot merger being shot down. We still see too many big-box locations in the office-supply segment that don’t need to be nearly as large as they are. The entire market is watching to see what happens with Staples and Office Depot. With the closing of Sports Authority, we will see new vacancies, but that will also bring new opportunities for retailers. Some mid-boxes might get together to split those locations up. We might also see bigger boxes looking to take entire locations. I’m sure Dick’s Sportingn Goods is looking at some of those spaces.

IREJ: What are consumers looking for these days when it comes to retail?
Owens: The retail market is still largely in a state of transition. This was escalated by the recession. During the recession, the weaknesses of retail were exposed. Stores were too big. Customer service wasn’t there. The recession certainly hurt, but those weaker retail players were already having problems before the economy went bad. We will now continue to see more Internet shopping. No one believes, though, that brick-and-mortar stores will go away. That was the big fear 10 years ago. No one believes that will happen now, though. What retailers need to figure out is how they can manage both the Internet and brick-and-mortar side of things. The most successful retailers will be the ones who can make those two channels – or three channels if you count catalogues – work seamlessly. I can order something online. If it doesn’t fit I can take it back to a physical store to return it. Or I can order something online and pick it up at the store. L.L. Bean does this well. The customer service and the seamless integration of their online and physical stores has been there with them.

IREJ: Which retailers are struggling with this right now?
Owens: One that is still grappling with this is the Gap. The Gap has multiple outlets. If I buy something from Banana Republic, I can’t take it back to an Old Navy. Customers are looking for that convenience, and the Gap isn’t providing it right now.

IREJ: It sounds like you envision a future in which the brick-and-mortar locations of retailers work better with their online sales.
Owens: Yes. You keep hearing the Amazon brick-and-mortar rumors. I think those will come to fruition. I think it’s inevitable that Amazon will open brick-and-mortar stores. It will be interesting to see how that goes. Operating in the world of physical locations is nothing like operating in the online world. Being able to deliver that customer service in the brick-and-mortar world when you are relying on people instead of processes will be a challenge for Amazon. I think you need both to be operating well. If I have a book title that I know I want, I might not necessarily want to battle mall traffic to hit Barnes & Noble. I might just want to go online, make an order and have that title delivered the next day to my doorstep. But the next day, I might want to go to a Barnes & Noble, get some coffee, read some books and spend a few hours perusing what they have.

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New study shows that co-working, flexible office space is on the rise

An example, in New York City, of co-working office space. (Image provided by The Instant Group.)

An example, in New York City, of co-working office space. (Image provided by The Instant Group.)

by Dan Rafter

U.S. office buildings are more frequently offering tenants co-working space today, office space that employees from several different companies share as a way to save on the cost of space and equipment.

According to the 2016 Flexible Workspace Review released in May by The Instant Group, co-working grew more than 10 percent across the United States last year. Office buildings offering co-working space and executive suites — offices that independent contractors or other workers can rent for a limited time — grew by 12.9 percent.

The Instant Group said that the total flexible workspace market grew by an average of 4.3 percent last year, with 3,596 combination centers now offering co-working spaces and executive suites. The United States leads the world in this kind of workspace, with the United Kingdom in second place with 3,290 combination centers.

The increase in buildings offering some form of co-working is four times higher than that of the growth of conventional executive suites, which increased by only 3.4 percent during the same time period.

“Co-working has proven to be a powerful driver of the market in the United States,” said Tim Rodber, chief executive officer of the The Instant Group, in a statement. “Co-working benefitted from early adoption by tech and media firms that have, in turn, done a marvelous job of promoting shared workspace and collaboration between start-ups and established firms.”

Rodber says that the growth of co-working and shared office spaces is showing no signs of slowing.

“What we are seeing is a broad expansion of flexible workspace solutions as companies of all sizes seek out collaborative workspaces that challenge the conventional office market,” Rodber said.

Tenants in all markets don’t have equal access to co-working spaces, though. According to the study, the U.S. flexible workspace market is still relatively concentrated, with 50 percent of the total market for this kind of office space located in just five states. The same 50 percent of the market is also concentrated in just 50 cities across the country.

Not surprisingly, given its reputation for tech start-ups, California leads the way as the state with the most flexible office space and the largest number of dedicated co-working spaces. According to The Instant Group, there are now 103 “pure” co-working spaces in California, a number that more than doubles that of any other state in the United States. These centers are devoted solely to co-working.

New York City continues to have the most expensive flexible work space in the country, with desks costing $1,047 to rent on average each month. Washington D.C. offers pricey flexible work space, too, with an average workstation rate of $1,022 a month. That’s an increase of 17.2 percent when compared to one year earlier.

In the Midwest, Illinois has the largest number of co-working centers, 145 according to The Instant Group. That’s a year-over-year increase of 5.4 percent. The average desk rate for co-working space in the state is $709 a month, according to The Instant Group.

Chicago, not surprisingly, led the way in the state, with 116 co-working centers with an average monthly desk rate of $839.

Ohio boasted the second-highest number of co-working spaces in the Midwest, according to The Instant Group’s report. The state had 70 co-working centers with an average desk rate of $588 a month. Michigan had 61 co-working centers with an average monthly desk rate of $643. Minnesota had 45 co-working centers, according to the report, a jump of 7.1 percent. The average desk rate here was $701 a month, while Tennessee had 56 centers with an average monthly desk rate of $652.

Posted in Chicago Commercial Real Estate, Illinois, Illinois real estate, Michigan commercial real estate, Minnesota real estate, office, Ohio commercial real estate, Tennessee | Tagged , , , , | Leave a comment