German coworking firm plans 100,000-square-foot flagship on Chicago's Magnificent Mile

A German coworking firm has opened its first U.S. office in Chicago, and will add a Mag Mile flagship as part of an ambitious expansion. Berlin-based Rent24 recently opened an approximately 15,000-square-foot office in a loft office building at 444 N. Wabash Ave., taking over the space of a local coworking business that previously operated there, Rent24 founder and CEO Robert Bukvic said. It is the first of many coworking locations planned for Chicago and throughout the United States, Bukvic said. The firm plans to open a location with up to 100,000 square feet of offices in a 24-story office building at 500 N. Michigan Ave., a space that will include a gym and conference center, Bukvic said. The first few floors are expected to open by late summer, with the remaining construction completed by the end of the year. SIGN UP Help us deliver journalism that makes a difference in our community. Our journalism takes a lot of time, effort, and hard work to produce. If you read and enjoy our journalism, please consider subscribing today. SUBSCRIBE TODAY The Chicago deals are part of Rent24's initial push in the U.S., which includes two leases near completion in New York, he said. The company has operations or plans for locations throughout Germany and in cities including London, Tel Aviv and Moscow. Rent24 also is buying space for a Loop office and plans to have six to eight Chicago locations open by the end of 2019, Bukvic said. Separately, the company is looking at two potential locations in the city for its coliving concept, he said. "We like Chicago because there is a very healthy mix of young startups and big corporations," Bukvic said, who said members in German offices include Tesla, Amazon and Mercedes-Benz as well as small tech companies. Its deal on Michigan Avenue is the first large lease in the building since a group of European investors, led by New York-based investor Samuel Schapira, bought the building for more than $86 million in November. Cushman & Wakefield office leasing brokers Barbara Schenberg, Lenora Adds and Chris McKinney represent the building owners. Coworking companies typically sign long-term leases or buy their properties. They then sell short-term memberships to companies or individuals. Rent24 sells monthly and one-year memberships. Rent24 is entering an already competitive coworking market in Chicago, where companies ranging from industry behemoth WeWork to small local players have gobbled up office space in recent years. Total coworking space more than tripled in the past three years to almost 2 million square feet in 2017, and could rise to 2.6 million feet this year, according to research by Newmark Knight Frank and Chicago Creative Space. But Bukvic said companies such as Rent24 – which allow members to use their offices throughout the world, and offer networking and special events – will outlast small local players in the industry. "It's not harming us to have competition," he said. "People understand the concept and the benefits we offer over the smaller competitors." Bukvic, who played junior-college basketball in Florida before playing professionally in Germany, Italy and Spain, joked that he's bringing the company to Chicago because he's a fan of former Bulls player Toni Kukoc – like him, a native of Croatia. rori@chicagotribune.com
German coworking firm plans 100,000-square-foot flagship on Chicago's Magnificent Mile