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Suburban Chicago Office Vacancy Rate Continues to Skid

CHICAGO-Rental rates start to trend down as the market slows; tenants could see some rates decline by as much as 10%.

By Bonnie Grota | Updated on October 19, 2001

CHICAGO-The suburban Chicago office vacancy rate increased during third-quarter 2001 to 13.1% from 11.7%, according to the latest report by CB Richard Ellis Inc., which tracks space available for lease in suburban Chicago’s 94.6 million sf of multi-tenant office buildings. The vacancy rate stood at 9.8% a year ago. The report estimates the amount of sublease space available for lease at 5.9 million sf.

There was a negative net absorption of 152,140 sf from July through September, compared with a positive absorption of 452,630 feet during third quarter 2000. Year-to-date, there has been a negative absorption of 196,644 sf, compared with a positive absorption of 3.5 million sf during third quarter 2000.

Jack Durburg, a managing director at CBRE, describes a lease the firm brokered that may be the largest such deal signed this year in Chicago’s suburban market. Washington Mutual Bank leased 172,785 sf at the Highland Landmark complex in nearby Downers Grove. The space will accommodate an expansion of Washington Mutual’s loan-servicing operations when the space is ready for occupancy in January 2002.

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