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Chicago Tied with L.A. for Office Construction
In a U.S. office market balancing strong employment with diminishing business confidence and economic growth projections, Chicago stands out for its building expansion, says Avison Young. Chicago ties with Los Angeles for the nation’s fourth most active office construction market, with 7.4 million square feet under construction.
In Chicago, nearly half (47.9%) of that space is preleased. Although New York City leads in new construction at 14.6 million square feet, just 21.6% is preleased. In L.A., it’s 59.8%.
“Chicago has seen a significant office construction boom in recent years, particularly in the West Loop and Fulton Market areas,” said Jeff Lindenmeyer, principal at Avison Young. “This continues to create opportunities for tenants, but also raises issues for landlords in competing submarkets, where many financial services firms and law firms have vacated to move into the new buildings. Many of those landlords are going to have to reposition their buildings to attract new tenants.”
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Pictured: Salesforce Tower Chicago, now under construction
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