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Chicago & Midwest  + Downtown  + Office  | 
Business leaders and politicians are talking up Chicago as the host city for the next Democratic National Convention in 2024

Cresa Sees Downtown Shift to Tenant’s Market 

Even as the fourth quarter of 2021 represented the first with positive absorption in downtown Chicago office, Cresa reported that occupiers with lease expirations in the next 18 to 24 months are entering a market that has seen “a swift shift from a landlord to a tenant market.”  

CBD deal velocity has slowed to one-fifth of the 10-year average. “With a large amount of sublease space coming on the market, landlords are coming under pressure to provide more incentives to attract tenants,” according to Cresa. “From providing more concessions, to offering or waiving termination fees, landlords have started to be creative to retain or attract tenants.” 

However, despite the downturn in leasing activity, there is concern that rental rates in some buildings will go up. “Some landlords, while increasing concessions, are justifying increases resulting from the cost of construction that is spiking due to material and labor shortages,” Cresa reported. 

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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