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Chicago & Midwest  + Greater Chicagoland  + Office  | 

Cresa Sees Uphill Climb for Suburban Office

Chicago’s suburban office market saw an increase in inventory to 218,033,504 square feet in the third quarter, up from Q2 levels, Cresa reported. Dovetailing with the rise in inventory is a decline in leasing volume: 367 deals during Q3, the first time this metric has dropped below 380 since 2009.

Of the existing inventory, 1,905 buildings totaling 110,167,638 square feet have 37,700,490 square feet of available space consisting of 29,827,067 square feet of vacancy, for a vacancy rate of 27.1%. “This rate represents an all-time high for vacancy in the suburbs,” according to Cresa.

Based on the current vacancy rate, “it would take over 10 years of net absorption to reach full occupancy,” according to Cresa. “This seemingly dire situation for landlords is further compounded by the fact that 72% of current vacant space has been on the market for over two years.”

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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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