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Fulton Market Continues to Shine as Chicago CBD Remains Steady
Occupancy levels and gross asking rates have held steady, according to Bradford Allen’s Q3 2023 Chicago CBD Office Market Report. The ongoing adoption of hybrid work saw the vacancy rate increase to 19.8 percent, up about a half percentage point from Q2, while the average gross asking rate remained at $44 per square foot.
Fulton Market continues to be a bright spot, and its vacancy rate fell to 16.2 percent from 18 percent. A blitz of transactions and moves has made Fulton Market a favorite for tenants seeking new space amid the flight to quality push. One office property transaction occurred in Q3, with a $45 million office tower sale to Oregon-based Menashe Properties.
“CBD employers continue to balance their office space needs with incremental overhead costs, including rent, keeping vacancy high compared to long-term historical averages,” said Neil Bouhan, senior managing director, research and communications, at Bradford Allen.
