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Chicago Office Market Dynamics Favor Tenants
The dynamics of the downtown Chicago office market exhibited favorable tendencies for tenants in the second quarter, as rental rates flattened and available options increased, Savills reported. The overall availability rate in Chicago finished Q2 at 16.3%, an increase of 60 basis points from a year ago.
However, Savills’ Anders Klein notes that high-quality space continues to be in high demand. Class A availability declined by 40 basis points year over year, falling to 14.5%. Six of the quarter’s 14 largest transactions occurred in new construction, including WeWork’s deal for 140,000 square feet at 167 N. Green St.
The West Loop again captured a majority of leasing activity, with seven of the 10 largest transactions this quarter occurring within the city’s largest submarket. Conversely, the East Loop has shown some softening of its overall fundamentals, with the overall availability rate rising to 18.4%, up 310 basis points Y-O-Y.
Pictured: 167 N. Green St.
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