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LEASING SPIKES
Strong demand for new product pushed quarterly leasing volume to 3.6 msf, marking the third quarter in 2018 that leasing exceeded 3.0 msf. Tenants leased nearly 13.0 msf in 2018, eclipsing the 2017 tally of 10.5 msf. 2018 leasing activity was 36% higher than the long-term annual average.
AVAILABILITY DROPS
Following an upward spike in the third quarter, the overall availability rate fell by 30 basis points to 16.6% in the fourth quarter. The Class A rate dropped more sharply, falling by 110 basis points to 16.4%.
RENT PUSHES HIGHER
The average Class A gross asking rent rose by 0.8% year-over-year to $45.90. The overall Downtown asking rent increased by 1.8% year-over-year to $40.73.
SALES UP
Office property sales in the CBD during the first eleven months of the year totaled $3.2 billion, a 69% increase compared to the first eleven months of 2017.
"Development activity has intensified in Downtown Chicago. Tenants continue to make aggressive moves to secure best-in-class new product as they strive to maintain growth and attract top talent.”
Eric Feinberg, Executive Vice President