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Downtown Chicago Office Posts Best Numbers Since Before Recession
Office tenants in 2019 took more space in downtown Chicago than in any year since before the Great Recession, Crain’s Chicago Business reported, citing CBRE data.
However, the vacancy rate actually increased during the fourth quarter as the Old Post Office redevelopment opened, and landlords will be challenged by new other new product coming on line.
That being said, the news for Chicago office owners is mainly positive. 2019 finished with almost 1.8 million square feet of positive net absorption, according to CBRE data. And even as vacancy ticked up to 13.7%, Q4 also represented the biggest single quarter for net move-ins in four years.
Last year’s move-ins totaled 640,000 square feet more than the annual average since 2015. “That’s clearly a sign of not only robust leasing activity, but [also] solid jobs growth and solid prospective jobs growth,” CBRE’s Matt Dobry told Crain’s. “We’re all encouraged by this news.”
Pictured: Old Post Office.
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