Source: CBRE Econometric Advisors
‘Live-Work-Shop’ neighborhoods are providing a silver lining for the beleaguered office sector. This refers to dense, walkable places that combine modern office space, housing and high-end experiential retail. Such districts are generally popular with younger workers, who often prefer an in-person social dynamic.
Many prominent Live-Work-Shop neighborhoods are outperforming the broader market in which they reside. Figure 1 highlights several examples of submarkets that have significantly outstripped their home markets for average quarterly net absorption since Q1 2020.
Chicago’s Fulton Market is perhaps the quintessential Live-Work-Shop success story. It combines a cluster of Michelin Star restaurants with highly functional office space. About 40% of this office space was delivered within the past two years. Indeed, Fulton Market’s mix of unique neighborhood amenities with newly minted office space puts it on a different plane than the broader Chicago market.