WeWork continues to expand its Chicago footprint, as it has just signed a 50,000 s.f. lease in the McCormick Building. Now, this player in the coworking third space has a combined 194,000 s.f. in River North, Fulton Market and downtown. This is typical of the company's strategy in other markets: to diversify locations, building types, and tenant base that will maximize exposure to entrepreneurs and professionals who need to lease short term working space.
And they have reason to stay proactive. While WeWork doubled its value in June to $10 billion in the six months prior, it needs to stay mindful of competitors. The shared working environment sector market has heated up in Chicago, growing from 11 in 2011 to 41 this year.
Incidentally, the McCormick Building is going to be on the market, combining 20-story property with the 21-story sister building at 122 S Michigan as one unit, with JLL as the broker.