24/7 Neighborhoods Offer Reprieve for Beleaguered Urban Office Markets

Apr 17, 2023, 09:40 AM by Matt Mowell

COTW_4.12.23_final copy

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.

redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin play-btn line-arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard