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Chicago Office Market

Average Asking Rent (Price/SF)          $29.09
Vacancy Rate (%)           16.9%
Net Absorption (SF)        619,564

The Chicago office market started off 2018 with a flourish of activity. Several large tenants signed renewals or expansions. Bank of America renewed its lease at 540 West Madison Street, expanding by 45,000 square feet to a total of 405,000 square feet. This is a separate lease from the one the bank signed in 2017 to anchor the new Howard Hughes Tower on Wacker Drive. Citadel also renewed and expanded for 418,000 square feet at 131 South Dearborn Street. Braintree announced that it will expand into 40,000 square feet at the Merchandise Mart, where the company already leases close to 80,000 square feet. In the suburbs, Mizkan renewed its lease for 54,000 square feet at 1661 Feehanville Drive in Mount Prospect. There were several new deals as well. T-Mobile signed a new lease for 55,000 square feet at Executive Towers West in suburban Downers Grove. California-based pharmaceutical company Depomed leased 21,000 square feet at Landmark of Lake Forest. Downtown Aspen Dental Management announced it will open a new Chicago office to serve as a Midwest support center. The group signed a lease for roughly 50,000 square feet at 1040 West Randolph Street and will move into the space once occupied by Sterling Bay, which will move into its development at 1330 West Fulton Street. All of this leasing activity is a positive sign for the market moving forward. At the metro level, vacancy dropped 50 basis points to 16.9%. Rental rates also jumped in the first quarter, increasing $1.50/SF from the prior quarter to $29.09/SF.

Chicago Industrial Market

Average Asking Rent (Price/SF)            $5.30
Vacancy Rate (%)              8.1%
Net Absorption (SF)     3,237,198

Chicago's industrial market started off 2018 with its vacancy rate dropping 30 basis points to 8.2%. This was because the market absorbed 2.7 million square feet of space, a significant jump from the end of 2017 but the smallest amount of first-quarter absorption recorded since 2013. Really Useful Boxes moved into 197,000 square feet at 355 Longview Drive in Bloomingdale. This new space is more than triple the size of the United Kingdom-based company's former space in Elk Grove Village. Eagle Foods moved into its new, 100,000-square-foot space at Delany Commerce Center in Waukegan. Rents moved only slightly, decreasing by $0.02/SF to $5.30/SF, still hovering around the highest rate the market has seen.



Chicago Office Market Report
1Q18
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Chicago Industrial Market Report
1Q18
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