Overall market tightens slightly; Class A space in demand while Class B options balloon
Downtown Chicago’s top-line office market fundamentals exhibited minor shifts between the second and third quarters. The market’s overall availability rate finished the second quarter at 15.7%, declining by 40 basis points from last quarter and 110 points year over year. However, the dynamics of Class A and Class B assets exhibited wholly different tracks. Overall Class A availability fell to 13.0%, marking the fourth consecutive quarter of downward momentum. Meanwhile, Class B availability closed the quarter at 18.1%, having risen for six consecutive quarters. Overall downtown asking rents averaged $41.01 per square foot (psf), increasing 2.5% year over year. However, rents grew by just 0.1% from the second quarter, while Class A asking rents slipped 0.6% quarter over quarter to $46.34 psf.