October 4, 2019
Third-quarter office absorption across the Chicago region was the best in four years, NKF says in its Q3 report. The million square feet of positive absorption pushed the region’s vacancy rate down 50 basis points to 15.9%, while downtown’s vacancy dropped to 12.1%, an 18-year low.
That being said, Savills’ Q3 report on the CBD notes a gap between Class A and Class B performance. While Class A availability dropped to 13% in its fourth consecutive quarter of improvement, Class B availability went in the opposite direction for the sixth consecutive quarter, writes Savills’ Anders Klein.
In summary, NKF’s Amy Binstein says the Chicago office market is “well-positioned to finish 2019 on a high note. Despite a slowdown on the capital markets side, real estate tax uncertainty and macro headwinds, strong construction starts, low vacancy, high rental rates and tenant demand all indicate that strong activity will continue into 2020.”
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