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LEASING INCREASES
Following a slow quarter of activity, with 730,000 square feet (sf) leased, quarterly activity rose to 1 msf. Even so, tenants have only leased 4.6 msf in the four most recent quarters, 20% below the long-term market average.
AVAILABILITY RATES DIP
The market's overall availability rate decreased by 40 basis points from 27.2% to 26.8%. The Class A availability rate remained level at 26.7%.
ASKING RENT RISES
Overall asking rent increased by 3.0% to $23.15 and jumped by 1.5% year-on-year. Class A rent rose by 3.3% to $26.15 quarteron-quarter, and increased by 1.6% year-onyear.
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.
"Conditions remain very disjointed in suburban Chicago with lower availability and even some new office development activity in prime locations with access to transportation. On the other hand, several complexes in the North and Northwest submarkets are saddled with major vacancies."
Jon Azulay, Corporate Managing Director