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Chicago Market Reports

Chicago Office Market

Average Asking Rent (Price/SF)          $29.64
Vacancy Rate (%)           16.4%
Net Absorption (SF)          48,089

The Chicago metro office market's total vacancy rate fell to 16.4% at the end of 2018. This is the lowest the rate has been since mid-2016, when two new towers delivered in the Central Business District. Gross rental rates grew again for the quarter, rising to $29.64/SF, the highest they have ever been in Chicago. The CBD vacancy increased slightly to 13.3% for the quarter as a result of several consolidations and the delivery of 210 North Carpenter Street, which is currently vacant but 100% leased. Class A vacancy downtown remained below the market total of 13.3% at 13.0% with average gross rental rates remaining above $38.00/SF. In the suburbs, more obsolete office buildings are being demolished, which contributed to a decline in vacancy. Total vacancy for the suburbs fell 70 basis points to 21.0%. Average gross rental rates remained at $23.00/SF.

Chicago Industrial Market

Average Asking Rent (Price/SF)              $5.50
Vacancy Rate (%)                7.7%
Net Absorption (SF)       1,968,973

The Chicago industrial market finished 2018 with less than 2 million square feet of positive absorption in the fourth quarter, marking the lowest year-to-date absorption since 2014. Vacancy rates increased 10 basis points to 7.7%; this still represents a decline of 20 basis points from the end of 2017. Part of the reason for the lower absorption and increased vacancy is the amount of speculative construction that delivered in the fourth quarter. Seventeen of the 20 buildings delivered this quarter were speculative, accounting for more than 3.4 million square feet of new, vacant space coming online. Nonetheless, rental rates continued to rise, reaching a record high of $5.50/SF.



Chicago Office Market Report
4Q18
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Chicago Industrial Market Report
4Q18
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Local Market Contact:

Amy Binstein

Research Manager
312.224.3144