Office Space » Comparing Office Space in the Chicago Loop: The Business District

Comparing Office Space in the Chicago Loop: The Business District

Comparing Office Space in the Chicago Loop: The Business District

Location is key when deciding to start or relocate your business – where you set up your office will influence the connections you make, the services you receive, and ultimately the bottom line of your budget. Chicago’s Loop district is only one of the city’s 77 community areas, but it’s also home to a full 42% of all competitive office space within the city, making it the top choice for most businesses.

With respect to vacancy rates and classes of office space in the loop, this comparison will walk you through each of the four major sections of the Loop and what you should know about them before you decide where to locate your own office space.

The East Loop

The East Loop strongly supports Class A office spaces, which occupy 54% of the area. Class B spaces are available at a little over half the remaining market – 28% of the total – while Class C spaces fill the remaining 18% of the district. On the whole, this means that the East Loop has many locations available for businesses that seek any type of office space. As of Q2 2014, the most recent time for which rates are available, the East Loop has a vacancy rate of 18.2% – and Class B spaces being nearly 10% more vacant than Class A. This makes the East Loop a good location for growing businesses looking to share respectable space at a competitive rate, as Landlords would dearly love to fill some of those spaces.

The Central Loop

The Central Loop is almost perfectly balanced between Class A and Class B space – the remaining Class C buildings account for only 10% of the submarket, making the Central Loop one of the more upscale districts in downtown Chicago. Overall vacancies in this district are at 12.6%, with Class A being the most occupied, so expect to see higher rents in this location than East Loop offices.

The West Loop

The West Loop could be viewed as the area’s “most prestigious” location, with an even lower percentage of Class C buildings than the Central Loop – and with 64% of all areas falling under Class A, the West Loop offers more high-quality office space than anywhere else in the city. Vacancy rates are at 12.9%, with Class C space being a little more vacant than the others, but market trends suggest that available spaces will continue to be filled as the economy recovers. When that happens, prices are going to go up, so shared lease arrangements may become necessary if you’d like to get office space at an affordable rate.

The South Loop

In short, there’s plenty of space and prices are very aggressive for tenant’s in this area, making it an ideal location for businesses that are very budget conscious! Shared office space programs, although not as abundant, are especially attractive here, pushing the already-low rates into a range that most startup companies can easily afford. These same benefits make the South Loop a good destination for non-traditional offices, where your customer traffic may be low, or the need to be next to all major transportation is not as important. However, some businesses will find that the South Loop ceases to be a good location once they’ve grown past a certain point and nearness to the heart of the Loop, transportation and variety of entertainment and attractions/restaurants become more important. Ultimately – it’s worth asking yourself whether the lowered rates now are worth potential trouble in the future.

Making The Choice

As you can see, each section of the business district has its own characterization. You do have options throughout the Loop, and if things look like they’re getting overwhelming, then don’t go it alone. Enlist the free help of a qualified representative, one who can compare and show each option that matches your needs. Someone that will represent your business appropriately today and as your needs change they can solve many problems for you before they even begin. It’s a considerable help, especially when you’re looking through literally millions of feet of office space.

If you’re still having trouble deciding where to go, think of it this way: Location is the key, but it is often times in the eye of the tenant.  Remeber that the class of buildings has to do with age of the buildings, desirability of the area, or closeness to transportation – but is not a direct correlation to prestige. For example, a Class B or C building with lake views could be more prestigious to you than a Class A space with 7th floor views of another building.

Your goal is to find the best balance between what you need and what you can actually afford and though with the help of a representative, you can find any class of office space in the Chicago Loop.