Cushman & Wakefield reports sales of class A suburban office buildings were down to 1 million sf, led by 205,654-sf Chatham Center I to New Boston Fund Inc. However, Cushman & Wakefield predicts sales activity will increase as investors seek to buy below replacement cost. Chatham Center sold for $135 per sf, while 2121 Bannockburn Lake sold for $166 per sf.

Meanwhile, tenants still seek more amenities in space, in part to keep up with competition for labor. "Since recruitment is so competitive, companies want to do all they can to attract good employees," says Rob Marquardt, a senior broker at Cushman & Wakefield's Rosemont office. "We're also witnessing changes in workspace environments. There are more open areas with fewer private offices. 'Hoteling' and 'common work areas' are other trends in which space is shared by employees who may work some of the time at home or may commute to other offices."

Suburban submarkets saw heavy interest by tech companies and dot-coms in short-term, inexpensive sublease space in 2000. However, tenants are taking their time before signing new leases or renewals, Marquart says. "Whether you're a start-up or whether you're looking to retain current space, expand or renew, there is more deliberation and less urgency involved in the decision-making process," he says. "We're also seeing a tremendous onslaught of sublease space on the market not only by dot-com's whose needs have changed but also from established companies that are scaling back."

Rental rates are lowest in the Oak Brook submarket at $24.34 per sf followed by Lisle/Naperville at $25.02 per sf, Northbrook at $26.20 per sf, Evanston/Skokie at $26.95 per sf to O'Hare at $29.08 per sf. While the Oak Brook submarket has several draws, it still has a 12.1% vacancy rate. It also saw the largest transaction last year with ComEd taking 430,000 sf in Lincoln Centres Two and Three.