CHICAGO—The Chicago region's office market has been putting up solid numbers for several years, but in the first quarter of 2015, net absorption turned negative according to a new report by Newmark Grubb Knight Frank. After seeing more than one million square feet of positive net absorption in the fourth quarter, the market registered net absorption of -125,131 square feet and the vacancy rate ticked up from 17.1% to 17.2%.

The firm found that leasing activity was strong overall, but a few sizable vacancies wiped out the gains made. BMO Harris Bank moved out of nearly 250,000 square feet at 311 W. Monroe St., and an entire floor of the Merchandise Mart was converted to office space, adding another 135,000 square feet of vacant space.

The vacancies will be temporary. As reported in GlobeSt.com, for example, Mesa West Capital provided $68 million in first mortgage debt to a joint venture of Prudential Real Estate Investors and GlenStar Properties for the recent acquisition of 311 W. Monroe St. The partners plan to reposition the 364,000-square-foot building with a multi-million dollar capital plan and leasing campaign.