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3rd-Quarter CBD Office Vacancy Rates Confirm Downturn in Economy

CHICAGO-With vacancy rates estimated to be at 9.5%, tenants re-evaluate their needs and look for owner concessions.

By Bonnie Grota | Updated on October 18, 2001

CHICAGO-Confirming what’s going on with the economy, the Downtown Chicago office vacancy rate increased during third quarter 2001 to 9.5% from 8.1%, according to the most recent report put out by CB Richard Ellis Inc. The rate was 8% one year ago. Factoring in a growing supply of space available for sublease, which the firm estimates at 4.3 million sf, the vacancy rate increases to 13.2%.

The net amount of space leased July through September was 249,263 sf. Net absorption year-to-date is 322,401 sf, a decline from 2.6 million sf during the first nine months of 2000 and running below the previous five-year average for the period of 1.8 million sf.

According to CBRE senior VP Bob Gillespie, “Many companies are looking for ways to cut or at least hold the line on capital expenditures, and that typically includes keeping real estate requirements to a minimum.”

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