CHICAGO- The suburban office market has struggled for years with recession and the downtown's tendency to draw companies and jobs away. But according to recently released data from MBRE, the suburbs won back a bit of ground in the first quarter, although the vacancy rate remains much higher than in the CBD.

Suburban Chicago lost six million square feet of occupancy during the recession, MBRE notes. Direct vacancy eventually hit 23.6 percent and the market largely stagnated in 2012. But in the first quarter of this year, direct vacancy fell 20 basis points to 23.0 percent and the suburbs had a positive net absorption of 330,000-square-feet. As reported yesterday, MBRE found that some CBD submarkets struggled in the first quarter while others, like River North and the West Loop, did quite well.

Significantly, all suburban building classes saw an increase in occupancy. The Northwest suburbs had the best quarter, accounting for 220,000-square-feet of positive absorption. MBRE says much of this positive absorption may have been driven by a decline in rental rates for Class A space, which fell another 4.1 percent in the past year.

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.