flight to quality drives rental rate growth; market remains bifurcated as tenants demand downtown-like amenities
The Chicago suburbs continue to witness elevated availability, ending the first quarter at 28.4% - a 40-basis-point increase quarter-over-quarter. Availability rates sharply deviate between regions. O’Hare remains among the most desirable locations for tenants, partly due to its proximity to transit and Downtown Chicago. O’Hare claims the region’s lowest overall availability rate at 20.4% (17.8% for class A). In contrast, opportunities abound in the Northwest Corridor, which stands at 35.6% available (35.6% for class A). Overall asking rents in Suburban Chicago averaged $24.02 per square foot (psf), a 3.1% increase year-over-year. O’Hare’s class A asking rents surged 10.3% in the past year and stand at $33.84 psf, marking an all-time high.