Small Office Tenants Brace for Big Rents

Adaptive reuse has its casualties, and in the CBD that's small businesses that relied on affordable rents in older office spaces, Crain’s Chicago Business reports.

Thanks to the trend of converting vintage office buildings nearing functional obsolescence to hotels or apartments, Class-C gross rents have risen 10.6% since early ’12 to $25.84/SF (a significantly higher jump than Class-A and B) and downtown’s lost 14.3% of Class-C supply, according to CBRE data.

While these now nomadic small office tenants may not want to pay up for trendy West Loop space, they are perfect candidates for the city’s explosive co-working scene (Coalition: Loop, pictured).

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Related Topics: Adaptive reuse , CBD , Class-C , Coalition: Loop
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