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Chicago Market Reports

Chicago Office Market

Average Asking Rent (Price/SF)          $27.37
Vacancy Rate (%)           17.5%
Net Absorption (SF)          69,043

Despite what the statistics show for the second quarter of 2017, the Chicago Metro office market had another healthy quarter of activity. Absorption was minimal at 69,000 square feet, causing vacancy to increase by ten basis point to 17.5%. Rental rates dropped a mere $0.09 to $27.37/SF, still higher than they were at year-end 2016 and year-over-year. Metro year-to-date absorption remains positive at 457,000 square feet, below where the market was at this time last year but up from the negative absorption that occurred at the end of 2016.

Chicago Industrial Market

Average Asking Rent (Price/SF)         $5.29
Vacancy Rate (%)            7.7%
Net Absorption (SF)  2,600,000

The Chicago industrial market carried on with strong activity in the second quarter of 2017. Absorption reached 2.5 million square feet but was not enough to counteract the delivery of over 4.1 million square feet of new construction, much of which was vacant. Therefore, vacancy increase just 10 basis points to 7.7%. This rise in vacancy is still a decline in year-over-year growth. And when we look at the last 5 years, the industrial market has delivered upwards of 65 million square feet of new inventory while vacancy has declined 150 basis points from 9.2% in the second quarter of 2013. With absorption at over 2.5 million for the second quarter and record high absorption for first quarter, the market's year-to-date absorption is at 6.1 million square feet, much higher than the first 6 months of 2016. The availability rate dropped ten basis points for the quarter, indicating that the market can expect to see a decline in vacancy as tenants move into new spaces.

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

Amy Binstein

Research Manager