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CBD Office Shines, But Suburbs Hold Their Own
Urban job creation is fueling downtown Chicago’s office market, as major corporations continue adding high-wage jobs to the area, Marcus & Millichap says. However, while the downtown market occupies the limelight, many suburban office properties are witnessing steady performance.
Coupled with that, CBD employment growth is a surge of development as owners try to alleviate rapidly tightening vacancy. Downtown has added more than six million square feet of office space over the past five years, according to Marcus & Millichap.
Most recently, deliveries have been confined to Fulton Market, although there have also been several completions in and around Goose Island.
Suburban hubs like Naperville, Oak Brook and Rosemont continue to support tightening office availability outside the CBD. But areas lacking a strong corporate footprint are seeing softer demand.
Because of this, Marcus & Millichap says, suburban Chicago is “again on track to receive limited supply in the coming months.”
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