January 31, 2020
The Chicago CBD’s office supply and demand fundamentals remain healthy, Colliers International research analyst Will Goldstick summed up in the firm’s newly-released fourth-quarter 2019 report. That’s the case even as vacancies ticked upward from the previous quarter—an anomaly that other reports have chalked up to the Old Post Office being added to the inventory in Q4.
The CBD vacancy rate increased by 30 basis points from last quarter to 12.3%, Goldstick reported. On average, over a five-year timespan, Chicago’s CBD vacancy rate has shed 74 bps per year.
Class A vacancy increased by 40 bps to 10.6%, although over a five-year timespan, Chicago’s CBD Class A vacancy rate has decreased by 126 bps per year on average. Conversely, Class B vacancies ticked downward, although the improvement for Class B has been considerably slower over the past five years, Goldstick reported.
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