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Vacancies Rise 100 BPs in Chicago CBD
Chicago’s CBD reported 925,008 square feet of negative net absorption in the second quarter of 2020, according to Colliers International’s Sandy McDonald. It’s the highest negative net absorption reported in a single quarter since 2009.
Accordingly, the CBD vacancy rate increased dramatically by 100 basis points to 13.9% in Q2. This is the third consecutive quarter of overall vacancy increases and the highest quarter-to-quarter jump since 2009. Current overall vacancy now stands as the highest in more than eight years.
“The next few months will be critical in the Chicago office market, depending on the response of local government and businesses to COVID-19 safeguards,” McDonald reported. “Recent trends are indicating that the Chicago area is experiencing recession-era downturns in the office market, despite reports of impending record level job additions nationally.”
Tenant activity is expected to increase slightly over the next few months, but McDonald said space expansions aren’t likely.
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