CB Richard Ellis senior vice president Lisa Konieczka agrees tenants continue looking to take advantage of current market conditions, but sees rays of hope for some building owners. "The first half of 2006 will see positive improvement with several firms occupying space including Blue Cross Blue Shield and CDW, which will give a much need boost to the East and West Loops," she notes.

However, Equis Corp. points to two new buildings planned for River North, following two West Loop and one Central Loop completions. "With proposed new projects at 300 N. LaSalle St. and 351 N. Clark St., the question is how many more buildings the Downtown market can support given current demand levels," Equis Corp. says in its market report.

Although the unemployment rate has improved, it may not be enough, adds US Equities Realty in its recent report. "The chances of an office recovery in the near future for the Chicago CBD market is dismal," the firm says. "Taking today's direct vacant office space into account of 17.2% or 22.6 million sf, one million sf of annual positive net absorption is needed for the next six years to reach a direct vacancy rate of 12.6% or 16.6 million sf vacant, which is comparable to the direct vacancy rates in the late 1990s."