search

The Real Deal Logo

Trending

HGTV’s “Mr. Flip It” gets four years in jail for $10M fraudHGTV’s “Mr. Flip It” gets four years in jail for $10M fraudOnmibuild sues HFZ, lenders on High Line projectOnmibuild sues HFZ, lenders on High Line projectTrump accused of making false statements about $50M Chicago tower loanTrump accused of making false statements about $50M Chicago tower loanRent board’s 4% hike will “plunge” buildings into distress: landlordsRent board’s 4% hike will “plunge” buildings into distress: landlords
Commercial
Chicago

Downtown office vacancy inches upward in second quarter: report

The vacancy rate rose from 13 percent to 13.3 percent, but absorption remained positive

Together, River Point Tower and 150 North Riverside have added 2.5 million square feet of office space since last year
Together, River Point Tower and 150 North Riverside have added 2.5 million square feet of office space since last year

Downtown office availability slightly outpaced leasing activity between July and September, nudging up the area’s office vacancy rate.

The overall vacancy rate for Downtown offices rose from 13 percent to 13.3 percent during the third quarter, making two consecutive quarters of increases, according to CBRE data cited in Crain’s

But industy observers remain confident in the underlying demand for office space Downtown, in part because the area registered positive net absorption for the fifth consecutive quarter. About 133,000 more square feet of office space was leased and occupied Downtown than during the second quarter, according to CBRE.

Sign Up for the undefined Newsletter

Downtown sublease space vacancy played a key role in pushing up the overall vacancy rate last quarter, jumping from 0.7 percent to 1.1 percent.

Both Facebook and Google have signaled plans to expand their footprints Downtown and Salesforce may join them with a 500-square-foot lease in the under-construction Wolf Point South tower.

They’d join mega-leases from companies like Walgreens, Bank of America and BMO Harris.

Millions of square feet of new office space is on the horizon, though. Riverside Investment & Development got underway on its 1.4 million-square tower at 110 North Wacker Drive earlier this year, and Sterling Bay’s trio of office towers in Fulton Market are expected to add 1.7 million square feet by the time they’re finished. [Crain’s] — Alex Nitkin 

Tags
CBRECommercial Real EstateDowntownOffice