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Office Leasing Rebounds Nearly 40% in Chicago Suburbs
Although still constrained by the COVID-19 pandemic, the Suburban Chicago office market saw some wind return to its sails in the third quarter, Savills reported. Transaction activity increased by 39.1% compared to Q2, and deal volumes were similar to levels witnessed in Downtown Chicago.
However, suburban market transactions were down by more than a third year-over-year, and few large tenants were known to be actively seeking space. Savills reported that companies continued to confront the question of their future occupancy amid optimism around developing an effective vaccine, while some tenants began to slowly return to the office.
“The recent spike in sublease availability, along with prolonged market stagnation, is expected to pressure reluctant owners to rethink base rent pricing and further enhance concessions packages,” Savills says. “Weakened deal activity is expected to persist until a vaccine becomes available, economic malaise caused by COVID-19 improves, and businesses can resume normal operations.”
Pictured: 2 TransAm Plaza in Oakbrook Terrace, IL.
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- ◦Economy
- ◦Lease
