Coworking in Chicago and Its Suburbs

Ian Brown • May 22, 2018


Coworking in Chicago and its suburbs has exploded in recent years. Since 2014, Chicago has seen a three-fold increase in coworking space. Total space in 2017 stood at about 2 million square feet and this year will likely see another 600,000 square feet come online—a major contrast to the 50,000 total square feet in Chicago ten years ago. As a result, Chicago is now home to many coworking companies both large and small, global and local.


As an example of the economic value of coworking companies, WeWork’s six Chicago locations alone generated nearly $2 billion a year in GDP in 2017 (comprising 1% of Chicago’s overall GDP). As innovative business models are refined and prove their worth, Shapiro & Associates’ clients are increasingly interested in coworking/ co-living concepts or seeking shared-use companies as tenants.


How Does Coworking Operate?

Most coworking companies sign long-term leases or purchase the building outright. The companies will then sell short-term memberships (mostly monthly but also daily and annual) to businesses or individuals. Many of the members are small businesses or startups. However, members also include major corporations such as Tesla, Amazon and Mercedes-Benz. Monthly plans vary in starting price from $220-750/month depending on location and type of desired works space such as a seat in a common area, a reserved desk, or private office.


As with most of real estate, coworking success centers on location. Larger companies have found members want a density of nearby amenities such as gyms, restaurants, coffee shops and nightlife thereby making coworking expansion easier in denser urban areas while requiring more strategic location decisions in suburban and secondary markets.


Benefits of Coworking in the Suburbs

Coworking spaces help attract startups to suburbs by offering flexible real estate. Specifically, many startups need high-quality space but flexible terms during early stages of growth. To incentivize coworking spaces, municipal officials in some suburbs often have more power or leverage in commercial parts of in downtown areas.


Suburban coworking spaces also create the collaborative value that denser urban areas inherently benefit from. Where many suburbs may lack public gathering spaces that promote the mixing of people and ideas, the community aspect of coworking spaces help fill that void at a lower price than coworking spaces in urban areas.


Value in Underutilized Spaces

Coworking operators are also beginning to share underutilized spaces, such as restaurants that are slow or not normally open during working hours. Companies like Spacious , WorkEatPlay , and KettleSpace partner with restaurants (and sometimes other venues such as hotels, museums, art galleries and even vacant retail) allow members to use empty tables for workspace while having the option to order meals. The lower cost and more flexibility of plans helps to fill the gap for many workers who are tired of bouncing around coffee shops and who cannot afford to pay for standalone coworking spaces.


Coworking Companies in the Suburbs of Chicago

Co-Optim is a local luxury coworking company that first opened in the northwest suburb of Deer Park in 2016 and recently opened a second location in Chicago’s West Loop. The Deer Park location now has over 150 members and the company plans to further expand in Chicago and in other major US cities. Other suburban coworking spaces include LifeWorking in Lake Forest , CoWorkers Link in Glenview , 25N Coworking in Arlington Heights and Geneva , Somerset Alpha Space in Lincolnwood , and Intelligent Office in Lincolnshire and Schaumburg .


Getting Zoning Approvals For Innovative Uses

The emergence of coworking and shared space is great example of the market meeting pent-up demand for more flexible work spaces. While much of the media attention goes to big companies in urban cores, there is much value to be realized from coworking in the suburbs. In many cases zoning may be an obstacle to newer and mixed uses involving coworking spaces. Shapiro & Associates has helped clients get entitlements for innovative uses like coworking. We are happy to discuss any questions you may have about getting approvals for your own business ideas.



By Dan Shapiro 04 Sep, 2024
69 Acre Land Acquisition
By Dan Shapiro 20 Jun, 2024
Introduction Last summer, an attorney filed a legal brief he had written with the help of the generative AI platform, ChatGPT. The document included citations to a series of legal cases that seemingly offered precedents that supported his client’s position. There was only one problem. As the judge in the case discovered, six of those cases did not exist. Instead, they were dreamed up by the online tool. This was only one of several high-profile incidents in which new technology has sometimes embarrassed the lawyers using it. Yet many legal experts believe generative AI will also change the legal profession in ways that will aid lawyers and their clients. Lawyers must be accountable for how they use AI. Not only must they carefully assess any bias inherent in algorithms before using it, but they must also consider ethical and fairness issues. AI holds tremendous promise to free legal professionals from the most time-consuming tasks, work more efficiently than ever, and empower them to focus on strategic projects that truly matter. Still, there are many ethical considerations of AI to keep in mind. Ethical Issues Depending on your jurisdiction, there may be formal ethical opinions addressing the use of AI. Be sure to confirm the existence of these ethics’ opinions or guidelines and how they apply to the use of AI. Bias And Fairness AI uses trained algorithms to analyze vast amounts of data. These algorithms can collect biased historical information, which means that the AI system may also inadvertently produce biased results, leading to questionable outcomes. Algorithms can be difficult to interpret, and it can be challenging to understand how they arrive at their decisions or source information. Privacy AI systems often rely on sizable amounts of data, including highly sensitive and confidential information, and may store personal and conversation data. When using the technology, lawyers need to ensure that AI systems adhere to strict data privacy regulations. For example, lawyers using ChatGPT must familiarize themselves with its Privacy Policy and Terms of Use before using the service. Additionally, they must make sure that the data is only used for the specific purposes for which it was collected. Lawyers must also consider professional obligations relating to privacy and information-sharing when providing any information with AI systems to ensure they are not running afoul of confidentiality obligations (to clients or other parties) or otherwise disclosing information improperly. Responsibility And Accountability As a rule of thumb, AI should be used as a complement to work, and not a replacement. While AI can streamline time-consuming and mundane tasks, strategic decision-making, complex legal analysis, and legal counsel are all examples of responsibilities that it simply cannot take over. As a result, lawyers must be proactive in establishing clear lines of responsibility and accountability when implementing AI in their firm. Summary As the use of AI in law firms becomes increasingly widespread, it is important that legal professionals address the ethical considerations surrounding it and ensure the technology is being used responsibly. By doing so, lawyers will be able to enjoy AI’s benefits while maintaining an ethical practice at the same time. In the end, AI has its benefits but it should not be relied upon to accurately apply the law to a fact pattern in the context of giving sound legal advice. Accurate legal advice includes understanding the context in which the law exists, experience and human thoughtfulness.
By Dan Shapiro 30 May, 2024
Public Hearings: Keys to Successful Presentations
By Dan Shapiro 18 Apr, 2024
HB 3306, HB 2099 and The Corporate Transparency Act
By Dan Shapiro 21 Mar, 2024
Client Success
By Dan Shapiro 11 Jan, 2024
A Glimpse into the 2024 Commercial Real Estate
By Dan Shapiro 09 Nov, 2023
Planning for your Property's Financial Future, by Jamie Baer
By Dan Shapiro 17 Aug, 2023
Commercial Real Estate Conversion Options
By Dan Shapiro 28 Mar, 2023
Tax Increment Financing Updates
Show More
Share by: