Demand for Chicago Flexible Workspace Down from 2021; Supply Grows 5% as Rates Remain Stable

Tuesday, November 8 , 2022

While demand for flexible workspace in Chicago is forecast to be down 14% between 2021 and 2022, the second half of 2022 has, so far, outpaced the second half of 2021, according to The Instant Group's latest data.

While demand for flexible workspace in Chicago is forecast to be down 14 percent between 2021 and 2022, the second half of 2022 has, so far, outpaced the second half of 2021, global workspace innovation firm The Instant Group has found. Workspace supply, including coworking, serviced, and hybrid office spaces, has increased five percent year-over-over, to 139 spaces.

Achieved workstation rates have remained stable over the past year, with an average cost-per-desk of $532 in 2022 and $531 in 2021. 

Demand, while down from 2021 and yet-to-recover from pre-pandemic demand, is up five percent from 2020. Notable differences were found in demand for size of space when compared to 2021: 

  • Inquiries for 0-2 desks was down 24 percent 
  • Inquiries for 3-9 desks increased 25 percent 
  • Inquiries for 10-25 desks increased 16 percent 
  • Inquiries for 25+ desks increased the most, by 33 percent 

“While the 0-2 workstation requirements have been down in Chicago’s CBD, the exciting thing here is the increasing inquiries for 3+ workstations,” said Brian Childers, Director of Digital Solutions at The Instant Group. “We are seeing the 0-2 workstation clients are finding they can work from home just as effectively as being in an office, while the 3+ workstation clients are needing the cross-team collaboration time. We are also seeing a lot of the 0-2 workstation inquirers migrating to the suburbs of Chicago for simple commutes.” 

Methodology

The included data is compiled via The Instant Group’s leading flexible workspace data platform. Rate data is based on transacted rates, providing the most accurate view available within the industry, while demand data is based on demand coming through The Instant Group’s digital booking platform, Instant Offices. 

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