Chicago & Midwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Office Demand Balance Could Shift in Tenants’ Favor
Demand for downtown space was steady in the first quarter with 166,064 square feet of positive net absorption, bringing the vacancy rate down 10 basis points to 12.2%, Colliers International reported. “The slight decrease in the CBD’s vacancy rate highlights its current state of equilibrium between tenant demand and office supply, as Chicago’s vacancy rate sits a mere 20 basis points below the 12.4% vacancy rate posted in the first quarter of 2017,” according to Colliers.
And although the state of equilibrium is a recent development after a landlord-favorable environment for three years prior, Colliers sees a swing in favor of tenants in the coming months. That’s because tenant demand will be hard-pressed to keep up with an additional 1.25 million square feet that will hit the market in Q2.
Accordingly, Colliers predicts that the CBD’s vacancy rate should reside closer to 13% percent by midyear.
Get Chicago News in 150 WordsFor comments, questions or concerns, please contact Paul Bubny
- ◦Development
- ◦Lease
