CHICAGO—The metro area's office market saw its vacancy rate blip up in the first quarter, according to a new report by Newmark Grubb Knight Frank, but that was largely due to opening of the CBD's new office towers. And overall, these new trophy spaces have attracted a healthy number of tenants, a run of good news that does not seem likely to end any time soon.
“Our market tracking reports show tenants that need a total of about 13 million square feet are looking for space,” Bob Chodos, vice chairman of NGKF, tells GlobeSt.com. “That's almost as deep a market as I've seen in my career.” And it may help push other developers to add more trophy space to the CBD inventory.
The tower at 150 North Riverside added 1.3 million square feet of new inventory to the CBD this quarter, pushing the metro vacancy up 30 bps to 17.3%, a level not seen since mid-2014, NGKF found. Still, that rate is 340 bps below the recession peak of 20.3%, and tenants absorbed another 1.7 million square feet, 1.2 million of which was in the CBD.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
