October 14, 2019
As in the CBD of Chicago, trophy office properties in the suburbs are faring best, according to Colliers International. While overall vacancy in the suburbs saw a quarterly rise of 30 basis points to 21.8% in the third quarter, trophy properties have seen steady declines in vacancy.
Q3 saw vacancies averaging 16.6% for trophy offices in suburban markets, down 170 bps from two years ago. For Class A assets overall, the vacancy rate for Q3 was flat at 22.3%.
Longer term, Colliers reports that landlords are continuing to improve trophy properties to include modern design buildouts and new amenities in order to attract tenants. Asking rents in high-quality Class A properties will exceed previous historical highs, Colliers predicted.
Conversely, Colliers noted, “Uncertainty of how vacancy will be impacted due to Cook County tax increases continues to loom over the O’Hare, Northwest and North markets.”
Pictured: Oak Brook Regency Towers in Oak Brook, IL.
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