LEASING DECLINES
Following a strong quarter of activity, with 3 million square feet (msf) leased – quarterly activity decreased to 2.2 msf in the first quarter. Tenants have leased 11.5 msf in the four most recent quarters, exceeding the long-term market average by 26.2%.
AVAILABILITY INCHES DOWNWARD
The market's overall availability rate decreased by 50 basis points from 16.2% to 15.7%. The Class A availability rate fell by 40 basis points to 16.4%.
RENT GROWTH SLOWS
The Class A gross asking rent increased by 0.4% during the quarter, averaging $44.72. The overall Downtown asking rent rose by 1.4%, from $39.36 to $39.91.
SALES UP
Office property sales during the last six months (through February 2018) totaled $2.6 billion, a 4% increase compared to the previous six month total of $2.5 billion. Sales in Chicago’s Suburban market totaled $800 million while Chicago CBD witnessed sales of $1.8 billion during this period.
"Chicago is on the cusp of another wave of development activity, including projects in emerging micro-districts like Fulton Market and the Clybourn Corridor. Unless Chicago lands Amazon, it remains to be seen whether current demand is sustainable as more than 7 msf delivers downtown in the next three years."
Robert Sevim, Vice Chairman