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Majority of Chicago Office Tenants Staying in Place or Upgrading
96% of Chicago’s CBD tenants maintained or upgraded building classes, according to a recent report from Avison Young.
The report showed that more than 20% of tenants occupying more than 10,000 square feet in the last six quarters moved to a higher-quality building. Another 74% stayed in the same class of building, many by renewing their leases.
“The dichotomy of the Chicago CBD office market continued in the first quarter of 2024, as high-quality, well-positioned buildings performed well while the lower-class segment of the market struggled,” said Damla Gerhart, Principal and Regional Managing Director of Avison Young’s Central Region. “Capital market activity remains nearly inactive as economic and sentimental constraints remain unfavorable for many investors.”
The report highlighted the “flight to quality” trend where employers are increasingly committed to providing their employees and seek highly amenitized properties.
