Pockets of Improvement in Midwest Office

CHICAGO—The CBDs in many Midwestern cities began reviving in 2012, and the coming year promises more growth. It will even occur in cities long considered Rust Belt basket cases. But experts say this sometimes surprising expansion has a dark side.

“It’s a tale of two cities,” said Michael McKiernan, managing director of Avison Young in suburban Chicago. The CBDs have revived, “whereas the suburban market is suffering.” In Chicago, large corporations such as Sears and Google have decided to leave their sprawling suburban campuses and migrate downtown, a process McKiernan expects to accelerate. “Many of these companies are being forced to run back to the city for the quality labor they need,” especially young workers “who aren’t going to make the trek out to the ‘burbs any more.”