CBD Office Users Now Looking Forward

CHICAGO—As reported yesterday in GlobeSt.com, according to a new report by Savills Studley the office market in Chicago’s CBD has finally returned to a pre-recession vacancy rate. In the third quarter, the overall availability rate fell by 100 bps to 15.0%, the lowest since the end of 2008. The drop in vacancy was also notable in the class A sector. Availability dipped 90 bps to 14.3%, also the lowest it has been since 2008.

“The downtown market continues to be robust, with the West Loop and River North continuing to be at the apex of the most sought after submarkets,” Robert Sevim, executive managing director of Savills Studley, tells GlobeSt.com. Not only has activity among tenants increased, owners in the CBD continue to show interest both in selling their properties, raising the possibility of new investment, and in making the renovations necessary to attract new users. And with developers getting ready to introduce new class A space, the downtown office market should remain vibrant for an extended period.