CHICAGO- Both the Chicago office and industrial markets continued making a steady recovery over the first quarter of 2013, according to newly released research reports from Newmark Grubb Knight Frank. However, the firm expects relatively anemic job growth in the Chicago area, making a full recovery unlikely.

“Demand for commercial space hinges on job growth, and through February, Chicago has recovered only 51% of jobs lost during the recession, lagging the U.S. recovery of 67%,” said Michael Sheinkop, executive vice president and regional managing director. “The state's daunting financial challenges and Chicago's competitiveness when it comes to attracting and retaining business are among a number of important local issues that will continue to affect the region's labor market.”

Vacancy rates in the metro are continued to drop. The overall office market saw 746,000-square-feet of positive net absorption and vacancy dropped 20 basis points to 18.6%, down from 19.7% one year ago. And a milestone was reached by the end of the quarter. All 5.3-million-square-feet of office space vacated during the recession were reabsorbed.