A 32,500-sf parking lot, which according to the published report is being bought from Toronto-based Manulife Financial, is across the street from a site that will see a 60-story office being anchored by the Pritzker Co.'s Hyatt Corp. Buck also is building at 1 N. Wacker Dr. one block north. However, the report comes in the same week ABN Amro announced plans to build up to 2.5 million sf of high-tech office space two blocks west across the Chicago River, resulting in the Netherlands-based banking firm leaving Loop office space.

Suddenly, the Downtown office market pendulum has swung swiftly back to tenants. Even with vacancy rates recently reported to be 8% or lower in the Downtown area, owners are advised to start cutting their best deals now before the Netherlands-based bank exits properties it currently owns or leases.

"We're looking ahead to a time between the beginning of 2002 and end of 2003 where there's going to be a tremendous amount of space with the construction by ABN Amro and Quaker, as well as their creating second-generation space," said John Goodman, executive vice president for Julien Studley. "As a result, I think we're going to have a significant oversupply, particularly in class A space, which we haven't seen in a while."