Chicago & Midwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Chicago Office Availabilities Rise for Sixth Consecutive Quarter
Chicago office witnessed its sixth consecutive quarter of rising availability during the second quarter, although new supply coming to the market has dwindled, Savills reported. Availability ended Q2 at 21.9%, increasing an additional 30 basis points from Q1.
Apart from North Michigan Avenue, every downtown submarket now has availability in excess of 20.0%, with space options in the West Loop reaching their highest level in a decade, according to Savills. However, the Fulton Market District saw availability drop by 500 bps, due in part to a large lease signed by Kimberly-Clark at 1155 West Fulton St.
Savills concludes that despite the market disruption trophy and A+ buildings remain largely unimpacted, continuing to command near-record high rents. Additionally, Fulton Market developments remain highly appealing to office tenants. Although growth in market availability is slowing, oversupply will persist in the near to medium-term, particular in older properties lacking updated amenities.
- ◦Lease
