That kind of rate can get you some great loft style live/work space in the west and south loop areas. I have an associate who just rented a duplex loft live/work space (south loop area) for $13 a foot. 20' ceilings, gas fireplace, 1-1/2 baths, center island kitchen. He even got 3 months free parking which says a lot in my book.
You should move HERE! I live in the west loop (live/work rental, 4,000+ sq. ft.). I have several associates and friends who are all over the south loop area. I just sold my Streeterville condo at a healthy profit and I'm looking to get something south in the next 12 months. I am looking with two friends this weekend at several of the new developments in the south loop area that they are looking at moving into. Wait a minute, you know what? You just might be correct. Some of those new $2,000,000 units down there are still available in many of the buildings. Could this be the slowing that you speak to? We'll be heading over to Museum Place to look into one of the larger units there. I'll be sure to check a few more new buildings occupancy rates while I'm down there. That might help me get a better feel for what you speak of. As I type this I notice my November 2 copy of the "Chicago Journal" and it's real estate offerings. Rubloff, Cacciatore Harper, Keller Williams, all seem to be doing brisk business. My buddy Jason just moved into Sky55 and is loving it. The Central Station development is growing solidly. That corner at 12th street seems to be going nicely. Maybe you're talking over by Target? I've lived in Chicago's near west, south and north sides for the last 20 years. I've seen nothing but expansion and now it's at a breakneck pace. If there's any slowing in absorption it's because of the sheer number of $250,000+ units hitting the market at the same time. Oh and just so's you know's, my Dallas market is rather stable. No major expansion, but it's a different mindset there.
Clearing firms and brokers can offer you some office space. (desk or room) It's good to work in the MERC or BOT for networking too... Start off with majors and get rates. I had an office with Fortis and Kottke... $300ish a month for a room (Basic internet, electicity, etc. etc. included)
TSGANGALT are you still renting office space Kottke? I was thinking about doing the same. How is it working out with you?
Also check local prop shops, some of them lease large suites, and they will sub-let to individuals, even if you don't trade for them.