Suburban Office Market Gains Ground

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.