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Chicago Office Market Sees New Highs in Direct Vacancy, Sublease Space
The health of the Chicago office market continued to decline in the first quarter of 2023 as direct vacancy rates and the amount of available sublease space reached new highs, reported Transwestern’s Caitlin Ritter and Tanita Bradley. Net absorption totaled negative 781,453 square feet, and the direct vacancy rate increased by 110 basis points to 19.7%, they wrote.
Another 948,275 square feet of available sublease space was added to the market, bringing the total inventory up to 7.7 million square feet. Despite these negative indicators, market rents continued to hold at $41.83.
Ritter and Bradley cited the Fulton Market District as “the single bright spot in the market. Tenants continue to flock to the trendy area, which offers new buildings with top-tier amenities in a dynamic environment. Unfortunately, much of Fulton Market’s office growth has come at the expense of Chicago’s other office submarkets, particularly the Central Loop.”
- ◦Lease
