JUMP IN LEASING
Leasing activity rose for the second quarter in a row, pushing to 1.5 million square feet (msf). Tenants have leased 4.4 msf in the four most recent quarters, still well under the market’s long-term average.
CLASS A AVAILABILITY RISES
The overall availability rate remained at 26.6%. The Class A availability rate rose by 50 basis points to 26.9%.
RENT PUSHES HIGHER
Suburban Chicago’s overall asking rent rose by 1.4% to $23.48. The Class A asking rent jumped by 2.0% to $26.81.
Office property sales during the last six months (through May 2018) totaled $2.9 billion, a 51% increase compared to the previous six month total of $1.9 billion. Sales in Chicago’s suburban market totaled $1.5 billion while Chicago CBD witnessed sales of $1.36 billion during this period.
"Suburban Chicago’s office market continues to see major shifts in ownership. A few investors are cashing out after a sometimes extended period of stabilizing their assets. Another set of buyers are entering the market, taking on the next group of value-add and opportunistic redevelopment projects."Jon Azulay, Corporate Managing Director