CHICAGO-Tenants have another 18 months to take advantage of the current “tenants’ market,” while corporate real estate owners might want to think about sale-leasebacks. Those are among the recommendations offered by Transwestern Commercial Services’ appraisal and consulting affiliate Delta Associates’ mid-year market report

Institutional investors seeking to buy well-leased class-A buildings in the stronger submarkets are pursuing a wise strategy, Delta Associates concludes. Capitalization rates on 2002 office building sales dropped below 8% in 2002 and are expected to remain there this year, according to Delta Associates.

Direct vacancy Downtown began July at 12.7%, according to Delta Associates, while the overall vacancy rate rose nearly a quarter-point to 15.0%. Meanwhile, overall vacancy in the suburbs dipped more than a quarter-point to 17.8%. However, that ranges from a relatively healthy 14.3% in the north suburbs to 24.3% in the O’Hare submarket, according to the report.

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