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Chicago Market Reports

Chicago Office Market

Average Asking Rent (Price/SF)          $29.15
Vacancy Rate (%)           16.9%
Net Absorption (SF)        698,574

As anticipated, the market had a slight hiccup this quarter, as new building deliveries and consolidations the CBD vacancy rate upward. Looking beyond the numbers, however, the market remains strong. The overall vacancy rate held steady at 16.9%, while rental rates increased slightly to $29.15/SF. The quarter was also marked by strong leasing activity throughout the metro. In the largest lease of the quarter, Publicis renewed and expanded into an additional 50,000 square feet at 35 West Wacker Drive, bringing its total occupancy to 681,000 square feet. German co-working firm Rent24 finalized a deal for a new, 100,000-square-foot, flagship location at 500 North Michigan Avenue. The newest office tower under construction along Wacker Drive got its second tenant this quarter, as Lincoln International signed a lease for the top three floors of 110 North Wacker Drive. The 60,000-square-foot lease starts in 2021. In the suburbs, machinery manufacturer Komatsu completed the relocation of its headquarters from Rolling Meadows to Triangle Plaza in the O'Hare submarket. Roughly 300 employees will move into the new, 80,000-square-foot space in 2020.

Chicago Industrial Market

Average Asking Rent (Price/SF)            $5.38
Vacancy Rate (%)              8.1%
Net Absorption (SF)       316,621

The Chicago industrial market remained very strong to close out the first half of 2018. Absorption was lower than usual, and vacancy increased slightly, by 10 basis points to 8.1%, although that can be attributed in part to more than 2.0 million square feet of speculative space that was delivered vacant. The largest of these projects is the 1.2 million-square-foot Rock Creek Logistics Center in Joliet. Rental rates increased again for the quarter, reaching a new record high of $5.38/SF. Although vacancy increased slightly, total availability dropped significantly in the first quarter. Availability has dropped by 4.8 million square feet since the end of 2017, indicating that some of the newly delivered space is being taken.

Chicago Office Market Report
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Chicago Industrial Market Report
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