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Office Leasing Gathers Some Steam in Chicago’s Suburbs
While the suburban Chicago office market has not been immune to the landscape-altering impact of the pandemic, the region exhibited some resilience as leasing volumes increased for the second consecutive quarter, Savills says in a new report.
Fourth-quarter transaction volume rose 34.4% quarter-over-quarter by square footage. For the year, more than 4.0 million square feet were leased throughout the suburban Chicago market, still well below the long-term annual average of 5.0 million square feet.
“Although reluctant landlords have thus far resisted lowering face rents and have instead enhanced concession packages, a repricing is nevertheless expected as market conditions stagnate,” the report states.
Evan as vaccines have begun to reach the population, Savills’ report says, “slow deal activity is expected to persist for multiple quarters to come until businesses can resume normal operations and the outlooks for the regional and national economies become more clear.”
Pictured: Highland Landmark II in Downers Grove, IL.
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