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Chicago Market Reports

Chicago Office Market

Average Asking Rent (Price/SF)           $29.70
Vacancy Rate (%)           16.7%
Net Absorption (SF)         484,147

Downtown Chicago office vacancy fell 30 basis points to 13.4% in the first quarter of 2020, after the delivery of the Post Office in the fourth quarter of 2019 caused vacancy to increase. Rental rates declined by a nominal $0.06/SF to $37.43/SF. New inventory remained a hot topic downtown, where two new towers broke ground: BMO Tower, located across the street from Union Station, and Salesforce Tower, the third and final tower planned for the riverfront Wolf Point development. New construction totaling 750,000 square feet delivered in Fulton Market, with 333 North Green Street accounting for the majority of this space. The building welcomed WPP this quarter, and Convene, Sterling Bay, Ernst & Young and Flexport are have committed to space as well.

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