CHICAGO—The West Loop has become the CBD's hottest office market and one of the reasons is the desire of many tech firms to find a downtown home. And Newark element14, an electronics and engineering firm, is just the latest tech company to make this move after spending the last 34 years in Ravenswood on the North Side. Beginning this week, the firm will occupy all of the 22nd and part of the 23rd floors of 300 S. Riverside Plaza, a total of 65,000-square-feet. It's at least the second major lease recently signed for the 23-story tower. In 2013, Zurich American Insurance signed a lease for more than 100,000-square-feet.

All 350 of Network's employees will transfer to the new location and the company hopes to make several new hires to its sales and engineering teams. According to Cook County records, last year the company sold its previous headquarters at 4801 N. Ravenswood Ave. for $6.5 million. Tom Hudak, the president of sales and marketing for Newark, was not available by press time, but GlobeSt.com will provide an update later in the week.

The vacancy rate for the Chicago office market sank to 13.4% by the second quarter, a drop of 60 bps in the last year, according to Colliers. And with more firms like Newark looking for downtown space, among other reasons, the firm's researchers believe the momentum will carry over into the next year. “As the Baby Boomer generation moves closer to full-fledged retirement, companies are increasing their appeal to the Millennial generation which desires a more urban and flexible work setting,” according to Colliers' second quarter report. “Many companies have responded by opening satellite offices in the CBD, relocating their technology and IT groups to the city or by simply relocating the company in its entirety.”