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Uptick in VC Funding Points to More Office Space Demand
Venture capital funding in the Chicago area and statewide hit new peaks in 2017, a level of activity that portends future demand for office space, especially from tech tenants, according to NKF. The firm’s first-quarter Chicago office report noted that VC funding has been off to a strong start in 2018 as well.
More broadly, the metrics point to a robust office market. NKF cited several large leasing deals in Q1, including Bank of America’s renewal and expansion to 405,000 square feet at 540 West Madison and Citadel’s 418,000-square-foot renewal and expansion at its namesake tower.
Vacancies dropped by 50 basis points from the prior quarter and 70 bps from a year ago to 16.9%. Rents rose by an average of $1.67 per square foot from Q3 2017. NKF’s 12-month forecast calls for continued improvement in these and other metrics.
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- ◦Economy
- ◦Lease
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