Why Businesses And Coworking Firms Are Turning To The Suburbs

Serendipity Labs recently moved out of its downtown Chicago location, but suggests that it will expand into the city’s suburbs over the next few months.

Over the last few years, the suburbs of major cities have become safe havens for practically everyone. Whether it’s a small family looking for more space, or a business interested in accessing cheaper offices, it’s safe to say these regions are having a moment.

Chicago in particular has seen an uptick of coworking operators tapping into these markets thanks to the mass shift to remote and hybrid working.

For those who want a workspace away from their homes, having a spot that is within a short drive takes precedence over a lengthy commute into the city. But sometimes, the neighborhood coffee shop is busy, loud and distracting.

Luckily, those are areas where some coworking firms thrive.

For instance, Serendipity Labs recently moved out of its downtown Chicago location, but suggests that it will expand into the city’s suburbs, such as Deerfield and Rosemont, over the next few months.

“Our thesis has been to have one city center location and then [build out] the suburbs,” said John Arenas, CEO of Serendipity Labs. “But our point of view is that it’s too early to go back to the Loop area.”

It makes sense, too. According to JLL Senior Management Director Andrea VanGelder, Chicago’s taxes are rising, leading profits to dwindle and corporations seeking cost relief.

A coworking space outside of the city offers just that thanks to their relatively inexpensive nature, easy sign-up process and lease flexibility that is ideal for economic uncertainty.

“Our strategy is to be in the suburbs where companies don’t want to sign a lease. They want to have flexibility to support a small team without having to do it themselves,” Arenas added.