chi-600 west chi (2) Echo’s decision to consolidate operations at 600 W. Chicago helped bring the building to full occupancy.
CHICAGO—Vacancy in the CBD hit a historic low of 11.0% by the end of the second quarter, but with developers getting ready to add millions of square feet of new space to the market, and with another 2.1 million square feet proposed for the Old Main Post Office , the market will have to maintain near record absorption levels over the next two years to match the current construction pipeline, according to a report on the second quarter by JLL . The CBD does, however, have several sources of strength that should keep demand for space quite robust. Corporate relocations and consolidations from the suburbs, for example, continue at roughly the same pace seen since 2012. McDonald’s agreement to occupy Sterling Bay’s redevelopment of the former Harpo Studios at 1045 W. Randolph St., taking about 470,000 square feet, was only the most notable of the quarter. Echo Global Logistics’ 135,000-square-foot lease expansion at 600 W. Chicago will bring many of its Skokie employees downtown, and Beam Suntory decided to relocate its corporate headquarters to the Merchandise Mart in late 2016. “With no slowdown in sight, large suburban companies are relocating into the perceived millennial hotspots of River North and Fulton Market,” JLL says. The company considers all of the downtown submarkets to be either rising or peaking, but the East Loop has been 2016′s standout. It recorded more than 600,000 square feet of positive absorption this year, “and the leasing momentum around Prudential Plaza, Aon Center, and the Illinois Center is the strongest in a decade,” JLL finds. “Next quarter, we anticipate even stronger absorption results as several tenants will move in to space that has been leased this year.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.