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Office Leasing Reaches 10-Year High in Downtown Chicago
Chicago’s downtown office leasing activity reached a decade high in the first three quarters of 2019, with transactions totaling 7.8 million square feet, a 7.4% increase year over year, said Cushman & Wakefield. Robust Class A absorption lowered overall vacancy to 13.1% in the third quarter, from 14.2% in Q3 2018.
“The ongoing demand for high-end space has pushed leasing activity to the highest level we’ve seen in a decade,” said Cushman & Wakefield’s Steven Bauer. “Companies want to be in Class A buildings to attract best-in-class talent in today’s tight labor market. While new construction is adding supply, it’s also leasing up quickly, so development of Class A space is expected to continue.”
Q3’s largest downtown leases were led by Uber’s 450,000-square-foot commitment to 601W Companies’ redevelopment of the Old Post Office (pictured), followed by Accenture’s renewal and expansion to 226,000 square feet at its namesake tower.
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