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Downtown Chicago Office Ends Streak of Negative Absorption
The Chicago CBD ended its streak of four consecutive quarters of negative net absorption after realizing 81,197 square feet of positive absorption in the fourth quarter of 2021, JLL reported. Although total trophy and Class A new leasing activity remains 45% below 2019 levels, it increased by 17% year-over-year.
The current Chicago office occupancy rate is hovering around 31%, a slight decrease compared to Q3 2021. Fueled by the spread of the Omicron variant, companies continue to push back re-entry dates while limiting occupancy.
JLL says the current outlook is “optimistic yet cloudy.” Omicron presents another obstacle in the future performance of office assets, “and while various Chicago-based companies have projected a spring return date, there is no guarantee. However, the silver lining is that various large office users that have ‘kicked the can’ regarding their space plans in 2021 may have upcoming decisions to make in the coming year.”
- ◦Lease
