Logistics Firms Buck Downsizing Trend in Chicago Office Market
Even as the pandemic has spurred e-commerce traffic and therefore demand for Chicago-area warehouse space, the rise of logistics firms is now making winners of local office landlords, Crain’s Chicago Businessreported. As many companies try cutting back office space to adjust to the remote work movement, Chicago’s third-party logistics and freight tech companies are almost all looking for more.
Trucking company U.S. Xpress Enterprises and logistics software company Flock Freight both signed new office leases downtown over the past month, while another freight brokerage, Nolan Transportation Group, reportedly is finalizing a deal for a Fulton Market District office.
“The vast majority of my clients are implementing workplace flexibility and hinting at downsizing and giving back space,” CBRE’s Dan Persa told Crain’s. “This is the one subset that universally says they need more and that in-office culture is paramount to their business.” Persa represented U.S. Xpress in its office lease.
Pictured: 306 W. Erie, where U.S. Xpress signed a lease for three floors.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
CRE courses for CE credits
Get CE course credits, centered around all things CRE. View our courses today!