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LEASING UP SLIGHTLY
Leasing activity rose from 1.2 million square feet (msf) to 1.5 msf – just below the long-term average. Tenants leased 5.3 msf during 2018, nearly equal to the 5.4 msf leased in 2017.
AVAILABILITY RATE STABLE
The overall availability rate fell by 20 basis points to 28.0%. The Class A availability rate fell by 70 basis points to 27.0%, but the Class B rate jumped by 65 basis points.
RENT FLAT
Suburban Chicago’s overall asking rent inched up by 0.1% to $23.56. The Class A asking rent rose by 1.4% to $26.89.
SALES UP
Chicagoland office property sales during the first 11 months of 2018 totaled $4.8 billion, a 71% increase compared to the $2.8 billion in sales witnessed during the same period in 2017. Sales in Chicago’s suburban market totaled $1.6 billion while Chicago CBD witnessed sales of $3.2 billion during this period.
"Leasing and building sales have both retreated in the second half of the year. Those firms that are relocating continue to shed space, improve building quality and gain efficiencies. There is little to indicate any pickup in activity in the short term."
Jon Azulay, Corporate Managing Director