Search
 

Downtown Chicago Office Vacancy Rate Increases Slightly

CHICAGO-With the direct lease office vacancy rate now at 10.8% in Chicago's CBD, CB Richard Ellis research finds that if sublease space is factored in as well, the rate rises to 15.6%.

By Bonnie Grota | Updated on October 03, 2002

CHICAGO-The Downtown Chicago office vacancy rate increased during third quarter 2002 to 10.8%, up from 10.6% the previous quarter, according to research by CB Richard Ellis Inc. The research survey report tracks the available space for direct lease in 111.5 million sf of downtown office buildings. Last year at this time, the vacancy rate was 9.5%. Factoring in a separate supply of sublease space, which CB Richard Ellis estimates at 5.3 million sf, the vacancy rate rises to 15.6%.

Net absorption from July through September was positive 64,200 sf, compared with positive 249,260 sf during third quarter 2001. Net absorption year-to-date is negative 66,640 sf, compared with positive 322,400 sf during the first nine months of 2001 and the previous five-year average for the period of positive 1.6 million sf. According to the CB Richard Ellis report, this is the first time since 1993 that the aborption level for the first nine months has been negative.

There was one new building that opened fully leased during third quarter 2002, the 408,000-sf 555 W. Monroe building. Completions for the year will total 1.7 million sf, matching 2001, with the fourth quarter opening of 191 N. Wacker Drive. Dearborn Center, at 131 S. Dearborn St., is scheduled to open in January 2003.

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.