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Class A Leads as Downtown Chicago Office Market Turns a Corner
Downtown Chicago’s office market has begun to stabilize, NAI Hiffman reported. The third quarter saw modest occupancy losses, with negative 15,009 square feet of net absorption, bringing year-to-date absorption to a negative 1.1 million square feet.
Although the downtown market has only seen one quarter of positive absorption dating back to Q1 2021, Q3 represented a significant improvement from the 250,221 square feet of negative absorption during Q2, and the 1.3 million square feet of negative absorption a year ago.
“As corporate leaders continue to evaluate their office footprint in the wake of the pandemic, we have seen several tenants with downsized renewals, though the market has shown signs of moderation heading into the end of the year,” wrote NAI Hiffman’s director of research, Nick Schlanger. With Class A product leading the way, Q3 saw 1.9 million square feet of new leasing activity, in line with pandemic norms.
- ◦Lease
