Unlike every other major city in the country, Chicago doesn’t claim to be a “tech capital” just because it has a steady flow of deep-pocketed investors and a huge number of high-flying startups. Sure, it’s the home base for powerhouses like Groupon, GrubHub and SpotHero, and up-and-comers like Avant, Civis Analytics, Kapow, and Uptake. And it adds thousands of new tech jobs each year.
But Chicago doesn’t like to brag.
The Windy City is attracting lots of new businesses, especially around Merchandise Mart in River North and Fulton Market in the West Loop. CBRE, a commercial real estate company, reported that in the third quarter of 2015 office space is increasingly harder to come by as businesses, many of them newly minted startups, move into these and other areas.
So where are all these startups locating? You can’t pin it down to just one part of the city, since much of the downtown area, and even some of the outlying areas, are extremely popular with young founders. But our number crunching reveals these five neighborhoods as the most appealing places to launch a startup.
Cross-checking data on startups from sources like AngelList and BuiltInChicago, we counted the number of startups and collaborative workspaces in each neighborhood. Then, we factored in the average cost of office space per square foot and ranked the neighborhood according to its overall desirability for newly founded businesses.
1. West Loop
Number of startups: 272
Collaborative workspaces: 33
Office space per square foot: $23
The Near North Side may attract a larger number of startups and the Loop may have more collaborative workspaces, but the much cheaper price of office space makes the West Loop an extremely desirable landing spot for scrappy young companies.
Google, Uber, and Twitter all have offices in the heart of the West Loop, which is the name for a huge swath of the city west of the central business district. The once-gritty factories and warehouses are being rapidly redeveloped into commercial and residential spaces. The neighborhood attracts startups in categories like digital marketing and advertising, data analysis, and app development.
Still known to locals as the “meatpacking district,” the West Loop has the second highest number of collaborative workspaces in the city. And these spaces are incredibly varied—you can enjoy the casual ambience at WeWork Fulton Market or even gather for a meeting after taking on the indoor climbing walls at Brooklyn Boulders.
The West Loop has galleries galore and some of the city’s trendiest lofts and condos. The neighborhood is the epicenter for music and beer festivals, food tastings, and the top-ranked restaurants like The Publican and Girl & the Goat.
Getting to and from the rest of the city is a snap. Three L lines—Blue, Green, and Pink—have a total of seven stations in the West Loop. Union Station and Ogilvie, two Metra suburban line stations, are also nearby.
2. The Loop
Number of startups: 178
Collaborative workspaces: 39
Office space per square foot: $27
With the city’s largest number of collaborative workspaces, the Loop is a magnet for startups. Real estate prices are more expensive than the West Loop, so we ranked it second on our list.
In the middle of the map, the Loop’s status as the city’s central business district means that it has a buttoned-up feel. After all, it’s home to the Chicago Mercantile Exchange, Blue Cross Blue Shield Association, Hyatt Hotels, and dozens of other major corporations. But don’t let all the suits fool you. Take a look at the young companies packed into the collaborative workspaces, including WeWork Grant Park and more than three dozen others. You’ll find some of the fastest growing startups at work nearby, including Raise and Narrative Science. It’s also home to GrubHub, the homegrown startup that had its initial public offering in 2014.
If you’re looking for adventure, climb to the 103rd floor of the Willis Tower and walk out onto the glass skydeck. If you get hungry after this workout, you can grab a bite at Max’s, a quick walk from the Art Institute of Chicago. We’d recommend ordering the jumbo chili dog, gyro cheeseburger, and Italian beef sandwich and splitting them with a friend. Afterwards, take a walk through Millennium Park and snap a photo of your reflection in front of the polished, mirrored, bean-shaped sculpture at AT&T Plaza. We call it The Bean.
There’s more than one way to get to the neighborhood. There are 38 stations along the seven L lines running through the Loop, including the Red, Brown, Green, Pink, Purple, Blue, and Orange lines. The LaSalle, Millennium, and Van Buren Metra train stations are here, too.
3. Near North Side
Number of startups: 437
Collaborative workspaces: 31
Office space per square foot: $32
The Near North Side has, by far, the highest number of startups in the area. It also has significantly higher rents than some of its neighbors, and the vacancy rate of 8.9 percent is the lowest in the city. That means finding the right space for any business can be tough. On the other hand, the Near North Side has nearly as many options for collaborative workspaces as the West Loop and the Loop, including WeWork River North.
Referred to as “Silicon Railway,” the Near North Side is the second largest business district in Chicago. The hottest part of this area, one that screams “tech hub,” is River North. Merchandise Mart is definitely where it’s at. This area has the city’s highest density of startups, most of which focus on software, e-commerce, and consumer web and business-to-business services. Uptake, ContextMedia, and SMS Assist are the fastest growing startups in the area, with Echo Global Logistics, GoHealth, and Trunk Club employing the most people.
But the Near North Side wasn’t always the place where geeks gathered. River North started out as an industrial area, then was transformed into a warehouse district. When the warehouses closed, the area attracted artists and writers looking for inexpensive loft and studio spaces in the vast empty buildings. It’s still home to one of the city’s largest collection of galleries. You can pick up paintings, antique furnishings, and even elegant chandeliers dating back to the 16th century here, as well as the latest fashions at boutiques catering to men and women.
Known for architectural standouts like the twin corn cobs of Marina City and 330 North Wabash, a colossal steel-and-glass beauty by Mies van der Rohe, the culture of River North is very much centered around the high life: fine dining and entertainment.
Three L lines—Red, Purple, and Brown—have 13 stations in the area.
4. West Town
Number of startups: 116
Collaborative workspaces: 15
Office space per square foot: $19
Northwest of the Loop, the West Town area includes a cluster of district neighborhoods, including Ukrainian Village, Noble Square, Logan Square, Bucktown, Wicker Park, River West, and Humboldt Park. Today, the neighborhood is known for its Bohemian feel, which attracts artists and musicians.
Some of the city’s fastest-growing digital companies—Inxpo, WyzAnt, and Coyote Logistics—are based here. It attracts crowdfunding app developers, organic food providers like Eat Purely, and sports-related startups like SportsLock and Spikeball, which was featured on ABC’s TV show Shark Tank. Office space is cheaper here, which appeals to companies with big ambitions, if not big bottom lines.
Logan Square has some of the area’s favorite eateries, like 90 Miles Cuban Café, Bang Bang Pie Shop, and Lula Café. The L train’s blue line has three stops in the neighborhood.
5. North Side and Far North Side
Number of startups: 136
Collaborative workspaces: 3
Office space per square foot: $22.50
With affordable office space, the North Side and Far North Side host a growing number of startups. These next-door neighbors include the bustling communities of Lincoln Park, Lincoln Square, Lakeview, North Center, Uptown, Edgewater, and Avondale. It attracts software companies like Fibroblast, which matches people with jobs, and web services providers like Kauzu.
Lincoln Park is home to one of the youngest startup founders in Chicago: Samuel Lurye, a 16-year-old entrepreneur who founded Social Synergy Media and got accepted into the Chicago-based accelerator Catapult. His first product under his startup is Kiss, a dating app. If a high schooler can find a community of supportive investors for his startup, so can you.
If you’re a sports fan or outdoorsy type, this is the perfect area for you. The prominent landmarks in the area include Wrigley Field, which is the home of the Chicago Cubs, and Lincoln Park Zoo.
Three L lines—Brown, Purple, and Red—make a total of 15 stops through this neighborhood. The best restaurants, at least in our opinion, are m.henry, Del Seoul, and Butcher & The Burger.
Photos: Pixabay, Lauren Kallen