Search
 

O'Hare Office and Industrial Markets Face Cloudy Prospects

ROSEMONT, IL-A crippled airline industry, victim of the September terrorist attacks, bodes ill for the O'Hare real estate market. Conditions were already a little soft, even before September 11.

By Dees Stribling | Updated on October 17, 2001

ROSEMONT, IL-In light of the severe problems in the airline industry, how will the O’Hare real estate market be affected? Even before the September terrorist attacks, the O’Hare office sector was a bit sluggish, but not extremely soft. According to statistics by Transwestern Commercial Services, direct vacancy rates in the market have held more-or-less steady since mid-2000, with a rate of 11.2% at the end of the second quarter of 2001.

“People are asking themselves how the attacks will affect everything, but it’s too soon to tell,” Ron Garvey, VP at Transwestern, tells GlobeSt.com. “We don’t know yet how it will affect the whole country, much less part of the real estate market. But if there’s a long-term, fundamental shift in the way people do business–and in the role of business travel–that will have a profound effect on the market.”

But, like most other markets in town, the office subleasing vacancy rate has seen a steady growth as companies downsize or merge. At the end of 2Q, 4.3% of the O’Hare market was up for sublet, in addition to the direct vacancies.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.