Chicago & Midwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Downtown Chicago Sees Third Straight Quarter of Office Leasing Uptick
Downtown Chicago office leasing volume increased for the third quarter in a row, Avison Young said in its third-quarter report on the market. However, vacancy is still at a peak and on a pro-rated basis, 2021 annual deal volume is still at its weakest point since 2007—about 43% below the 20-year average.
The report said downtown tenants’ return-to-office strategies and corresponding office needs still vary significantly from company to company. However, with some larger deals closing in Q3, including leases by Heinz and Kirkland & Ellis, “it will be important to watch for industry-specific trends to beginning to develop.”
New developments and “vast assortments of amenities” have kept activity levels in the Fulton Market District considerably higher than downtown at large. If this trend continues, “other submarkets will need to find ways to compete,” according to the report, prepared by Avison Young’s Peter Kroner, Danny Nikitas and Sean Boyd.
Pictured: Hines’ Wolf Point, where law firm Kirkland & Ellis signed one of downtown’s largest office leases in recent years.
- ◦Lease
