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Chicago Market Reports

Chicago Office Market

Average Asking Rent (Price/SF)           $29.76
Vacancy Rate (%)           16.7%
Net Absorption (SF)         476,358

The Metro Chicago office market ended 2019 on solid footing with positive momentum. This was the first time since 2014 that the metro had four quarters of positive absorption, totaling approximately 2.0 million square feet for 2019. Vacancy increased 70 basis points over the quarter as a result of the 2.5 million square feet of office space delivered downtown at the Post Office. At 16.7%, the metro office market's vacancy rate ended the decade 390 basis points lower than it had started, at 20.6% in 2010. Tenants' continued preference for new, high-quality space at any cost is creating a significant divide between Class A and Class B properties in both the CBD and suburban markets. This preference is also fueling the supply pipeline, which includes new developments in neighborhoods once considered on the outskirts of downtown and redevelopments in the suburbs. Although the market will certainly begin the new decade facing challenges both locally and nationally, Chicago's steady growth and diverse economy should help steady the ship.

Chicago Industrial Market

Average Asking Rent (Price/SF)              $5.81
Vacancy Rate (%)                6.6%
Net Absorption (SF)        5,012,382

Chicago's industrial market continues to be the darling of the commercial real estate market with vacancy falling to 6.6%, in part, thanks to record-breaking absorption in 2019. Absorption reached slightly more than 23.0 million square feet for 2019, spurred largely by e-commerce and logistics tenants. This decade, vacancy fell an impressive 540 basis points, and at 6.6%, it is the lowest recorded vacancy. This decline in vacancy is even more impressive when you consider that the market simultaneously delivered 110 million square feet of new inventory in that same time period. Rental rates increased again this quarter, climbing to $5.81/SF, which is also a new record and an increase of 5.4% year-over-year.

Chicago Office Market Report
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Chicago Industrial Market Report
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Local Market Contact:

Amy Binstein

Research Manager