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Chicago Office Recovery Hits Delta Speed Bump in Q3
The Chicago region’s office market hit a delta speed bump on the way to recovery in the third quarter, Newmark reported. Across the Metro, Q3 represented another challenging quarter, with pockets of positive activity, wrote the firm’s Amy BInstein.
Vacancy increased to 20.6%, a 70-basis-point increase, the highest rate the metro area has seen since 2010. Although the CBD’’s vacancy rate was lower than the regional average, it rose by 30 basis points during Q3.
“The COVID-19 delta variant has pushed return-to-office dates past the originally scheduled date of Labor Day,” Binstein reported. “There have been two new common plans announced; some companies have opted for a new return date of January 2022, while others, concerned with the war for talent, have chosen a return date of November 2021.”
Chicago’s current office occupancy average is lower than Kastle Systems’ 10-metro average of 33.6%.
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