EAST LAKEVIEW — When you've got 4 percent of the city's buying power in a half-percent of its area, people are going to take note.
But when revenues go up, so does rent.
"The good news is, Lakeview East is always going to be very vibrant. But as a retail store, you have to do the numbers and know if you're not going to make that profit," said Maureen Martino, executive director of the Lakeview East Chamber of Commerce.
Maggie O'Brien updates the board of available items at Lakeview Kitchen and Market, a shared kitchen space in Lakeview East that reflects a growing trend of shared business spaces in the community. [DNAinfo Chicago/Ariel Cheung]
The 1.16 square miles that comprise the Lakeview East Chamber of Commerce account for $1.5 billion in buying power (residents' disposable income) in 2014, according to a PLACE Consulting study. That easily outshines trendier areas like Lincoln Square ($284 million) and Wicker Park/Bucktown ($386 million). When comparing the buying power per square mile, Lakeview East has an even stronger case.
Meanwhile, rent prices per square foot have skyrocketed in the district, Martino said. It presents a sort of economic Catch-22, but hopeful start-ups and long-time businesses are finding innovative ways to remain both in East Lakeview and in the black.
Ariel Cheung says sharing helps business owners and landlords:
After three decades on Clark Street, Tony Di Pasca closed his Carissima Salon in January to hunt for a new, less expensive lease. He needed something smaller — boutique salons were trickling over to the United States from Europe, where they'd been a growing trend since the '90s.
It made sense, he thought, to "really cater to clients on a small basis and give them a little more individual attention," while also reducing overhead, Di Pasca said.
He turned to Vincenzo Papasidero, a world traveler whose organic, eco-friendly salon gets rave reviews in Los Angeles. Together, they searched for a cozy, intimate spot to open a VP Organic Salon in Chicago.
Lucky for them, Sage Boutique had room to spare. The boutique split its 800-square-foot space at 3125-27 N. Broadway St. and operates now in half, with a little overflow into the micro salon tempting clients with a new dress to complement their blow-out.
Luda Gutsal finishes a haircut at VP Organic Salon, 3125 N. Broadway, on Thursday, July 9, 2015. VP Organic Salon shares a rental space with Sage Boutique, part of a growing trend of shared business spaces in Lakeview East. [DNAinfo/Ariel Cheung]
VP Organic Salon opened June 15 with four pristine white chairs and minimalist decor. The two have been working in harmony ever since, Di Pasca said.
"We like that it's next door, and she benefits from our clients, because they're conscious about fashion and things like that. It's a win-win situation," Di Pasca said.
And for Martino and the chamber, it's win-win-win.
"It's good to hear that the chamber was a player in some of this stuff, and it's important because we have the relationships [with businesses and landlords] most of the time," she said. The chamber keeps a running list of available storefronts and facilitates solutions to retail woes.
Nontraditional business set-ups have taken off in the aftermath of the recession, with pop-ups and shared office spaces like Briar Office Suites and the soon-to-open DeskLabs leading the trend. Ideas for shared salons, personal trainer spots and artist spaces have been floated over the past three years, and a micro bakery is opening in the near future, Martino said.
"It is the trend, and I think this is not going to end as we see more and more of the leases going up and becoming unaffordable. The future is going into shared spaces or micro spaces and also picking a location where you'll find success within those shared spaces," she said.
The chamber's efforts to get ahead of the trends have paid off, with 20 businesses opening in Lakeview East this year and another dozen expected before 2016, Martino said.
Lakeview East Chamber of Commerce worked to keep Contacts and Specs Unlimited in the neighborhood after a rent increase had its owner considering a move. The store is relocating to 3117 North Broadway. [DNAinfo Chicago/Ariel Cheung]
On Monday, one shared-spaces concept generated buzz on Broadway with a ribbon-cutting ceremony: Lakeview Kitchen and Market, 3109 N. Broadway St., rents out kitchen space and sells the baked wares in its storefront.
Now a month old, the shared kitchen is "a winning model," Martino said, drawing in regular business from Cookie Yum, Crave Cuisine, Rustic Tart and other start-ups, menu testers and caterers.
"We may never see a lot of these younger generations actually opening brick-and-mortars on their own, but we hope shared spaces give them an opportunity to save money. One day they'll be able to afford bigger shared spaces — or even get their own," Martino said. "The good news is, the businesses in Lakeview East want to stay in Lakeview East."
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