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Chicago Suburban Office Has History of Stability On Its Side
As with many office markets across the U.S., the suburbs of Chicago are largely on pause due to COVID-19. However, JLL’s first-quarter report suggests that both the market’s recent history and its long-term record point to a fast rebound once the pandemic subsides.
Early Q1 saw positive net absorption and asking rents continue to rise, writes JLL’s Edgar Leon. “The Cook County submarkets experienced the largest rent growth. In fact, O’Hare Class A rents have risen 38.8% since 2010, slightly higher than Chicago’s West Loop Class A growth of 36.5% over the same period.”
Longer term, Leon writes, “In periods of economic contraction, the Suburban Chicago office market has historically experienced lower volatility and greater stability than other regions, due to its diverse tenant base. JLL will be closely monitoring leasing activity, move-ins, and availabilities over the next several quarters, as construction activity slows and tenants evaluate their financial conditions.”
Pictured: Innovation Park in Libertyville, IL.
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