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Downtown Chicago Office Rallies in Q4 Yet Remains “Bruised”
The downtown Chicago office market exhibited incremental improvement in the fourth quarter, as leasing activity totaled 2.7 million square feet, the highest tally in seven quarters, Savills reported.
“Companies showed an increasing willingness to transact space, with many seeking out the highest quality available options and capitalizing on favorable market conditions,” wrote Savills’ Anders Klein, regional research director.
That flight to quality increased the bifurcation between downtown’s Class A properties, where availability held steady at 18.4%, and Class B, where it rose to 27.5%. Accordingly, the Fulton Market District witnessed its best-ever quarter for leasing.
Despite the positive signaling, “the Downtown Chicago office market remained bruised by the ongoing effects of the pandemic and work-from-home,” Klein wrote. Space utilization remained weak in Q4, and for downtown and the broader metro area, “the office market recovery in 2022 will be uneven at best, particularly within older, less amenitized office buildings.”
Pictured: 167 N. Green St. was among the Fulton Market properties that scored fourth-quarter leasing success.
- ◦Lease
