
Outlook Remains Uncertain for Chicago Office Sector
Chicago CBD office market fundamentals continued to weaken throughout 2022, reported Transwestern’s Caitlin Ritter. Net absorption for the year hit negative 1,182,826 square feet, while vacancies continued to climb to historic highs.
“Chicago’s office market outlook remains uncertain with signs of trouble ahead,” Ritter wrote. “The combination of new inventory, the large blocks of space left behind by relocating tenants, and the office sector’s struggles with remote and hybrid work, have led to significant uncertainty. The rapid rise in interest rates, fears of an economic recession, and the sharp downturn in the tech sector could turn the headwinds into a full-blown storm.”
However, Ritter noted “plenty of hopeful signs, the brightest being Google’s plans to take over the James R. Thompson Center and the ‘rapidly developing Fulton Market area.” She added, “Chicago’s resilient, diverse economy and large talent pool will continue to foster growth and attract dynamic companies.”
- ◦Lease