Downtown Chicago office leasing accelerates, report finds
Downtown Chicago has wrapped up its busiest quarter for office leasing since 2016, trimming vacancy rates ahead of an expected surge in new space, the real-estate firm CBRE Group Inc. reported in a market survey.
The report found that the central business core, covering the Loop and areas immediately north and west of it, saw net leasing activity of nearly 460,000 square feet during the quarter, the highest total since the third quarter of 2016. CBRE said some of the largest deals came from providers of shared office space, as well as technology companies.
"Over the last two or three quarters, the velocity of deals has only accelerated," said Kyle Kamin, executive vice president of CBRE. He said the market appears poised to absorb the impact of added space due to hit the market, such as the 2.7 million square feet at the Old Post Office, 433 W. Van Buren.
The downside for companies that need space is that rents continue rising. CBRE said average asking rents in the downtown market now exceed $40 per square foot. For the full story, click here.