The Space Race
A GLIMPSE INTO THE EFFECTS OF NON-COMPETES
WITHIN THE COWORKING INDUSTRY.

WHAT’S A
NON-COMPETE?
Non-compete’s (NC) reduce
available building options.
As a legally-binding

OVERALL COWORKING IN CHICAGO’S CBD

2.6 MSF

43.4 MSF

(2% of the CBD)

(33% of the CBD)

is occupied by
coworking

is restricted
by NC

clause within a lease
contract it prevents certain
competitors from locating
in the same building.

As a result of
non-competes,
coworking firms
control 18X
what they
occupy.

30

coworking
companies

86

20

coworking
companies hold
at least one NC

61

buildings have
a coworking
tenant

buildings have
NC currently in
place

84

11

new coworking
leases signed
since 2012
(includes renewals
and expansions)

new leases have
already signed for
occupancy in
2019 or 2020

 Class A Breakdown
NON-COMPETES ARE RESTRICTING
THE MOST DESIRABLE ASSETS
86 CLASS A BUILDINGS
exist in the CBD

62%

51 CLASS A BUILDINGS
do not have a non-compete
in-place
41 CLASS A BUILDINGS
currently do not have a
coworking tenant*

OF THE CLASS A
MARKET IS REMOVED
BY NON-COMPETES

What does this mean?

22 CLASS A BUILDINGS
have sufficient available
space for coworking firms**

A TYPICAL
CLASS A OFFICE
TENANT HAS

5X

MORE BUILDING
OPTIONS
THAN YOU

12

WEST LOOP

5

EAST LOOP

Coworking hot spots, West Loop and
River North, account for 50% of the
coworking inventory in the CBD. As
non-competes quietly removed space
from the market, 12 Class A options
in West Loop exist while only one
remains in River North.

4

CENTRAL LOOP

2

FULTON MARKET

1

RIVER NORTH
NORTH MICHIGAN AVENUE

The fate of coworking is clear — space
and time are limited. Five buildings
will be left by 2020.

No current availabilities, but two new
developments will deliver in late 2019.

0
*Tenants leasing more than 10,000 sf+.
**Availabilities consisting of 25,000 sf+.
©2019 Cushman & Wakefield. All rights reserved. The
information contained within this report is gathered
from multiple sources believed to be reliable. The
information may contain errors or omissions and is
presented without any warranty or representations as
to its accuracy.