“There continues to be great demand for amenity-filled class A properties in the various suburban markets,” says Francis Prock, principal at Colliers' suburban office marketing group. “Because of that tenant-driven demand, and the absorption that has taken place over the last several years, we continue to see building owners investing in their properties to ensure they have a modern amenity package to attract new tenants and retain existing tenants.”

Increasingly, he adds, building owners across the suburban marketplace are addressing this fact and realizing that they can compete—and with great success a la Caterpillar—with the new or repurposed buildings in Chicago's hot Fulton Market, West Loop and River North markets.

“Large-scale corporate relocations to the CBD like McDonalds are headline grabbers, obviously,” says Steve Kling, principal, Colliers. “The lesser-known story is how suburban office landlords are stepping up in a big way to offer amenity packages that rival those at the most sought-after CBD properties. Many of the properties that we represent are in the process of full-scale renovations to modernize their common spaces and add new amenities.”

The most popular and necessary amenities considered necessary to attract firms that employ a large number of millennials include food, fitness, collision spaces, outdoor spaces, technology and wifi spaces, game rooms and parking.

Colliers officials note that many class A complexes in the suburbs, including Schaumburg Towers, Chatham Centre, Parkway North, One O'Hare Centre and Schaumburg Corporate Center, have renovated amenity and common area spaces.

As reported in GlobeSt.com, for example, GlenStar Properties recently acquired Schaumburg Corporate Center, a one-million-square-foot complex, for about $70 million. The complex had not changed hands since it was developed in the 1980s. And GlenStar has already launched an approximately $30 million renovation program to upgrade it to a true class A asset.

Many town and municipal officials have also begun to realize the importance of office or community amenities. The Colliers team specifically noted the work done by the town of Rosemont. Several years ago, it added MB Financial Park, a collection of restaurants and entertainment outlets. Today, it has the Pearl Street District currently under construction, which will soon add three restaurants and a boutique hotel to the area.

Prock says this project helped motivate Middleton Partners to acquire the two-building, 230,754-square-foot Balmoral Office Campus.

CHICAGO—The suburbs have been seeing a number of office users leave and move into Chicago's CBD. But many of the office buildings in the suburbs have retained both their appeal and their tenants. The best-performers seem to be the properties that have a modern, competitive amenity package in place, or those buildings located in communities that offer access to modern conveniences.

According to the first quarter 2017 office market report by Colliers International, the vacancy rate for these class A+ properties just fell to 19.4%. This represents a significant quarter to quarter decrease since the end of 2016 when the rate for this type of space was 20.9%.

Colliers defines this space as the premier echelon of class A buildings, as determined, in part, by the quality of the amenities offered. In the suburban market, Colliers puts 134 buildings in this class, totaling 33.2 million square feet of space.

The company notes that while true class A space has shown improvement, there have been some hiccups. However, the firm expects the improving class A results to continue. In fact, nine new class A leases of more than 15,000 square feet have been signed so far in 2017.

“There continues to be great demand for amenity-filled class A properties in the various suburban markets,” says Francis Prock, principal at Colliers' suburban office marketing group. “Because of that tenant-driven demand, and the absorption that has taken place over the last several years, we continue to see building owners investing in their properties to ensure they have a modern amenity package to attract new tenants and retain existing tenants.”

Increasingly, he adds, building owners across the suburban marketplace are addressing this fact and realizing that they can compete—and with great success a la Caterpillar—with the new or repurposed buildings in Chicago's hot Fulton Market, West Loop and River North markets.

“Large-scale corporate relocations to the CBD like McDonalds are headline grabbers, obviously,” says Steve Kling, principal, Colliers. “The lesser-known story is how suburban office landlords are stepping up in a big way to offer amenity packages that rival those at the most sought-after CBD properties. Many of the properties that we represent are in the process of full-scale renovations to modernize their common spaces and add new amenities.”

The most popular and necessary amenities considered necessary to attract firms that employ a large number of millennials include food, fitness, collision spaces, outdoor spaces, technology and wifi spaces, game rooms and parking.

Colliers officials note that many class A complexes in the suburbs, including Schaumburg Towers, Chatham Centre, Parkway North, One O'Hare Centre and Schaumburg Corporate Center, have renovated amenity and common area spaces.

As reported in GlobeSt.com, for example, GlenStar Properties recently acquired Schaumburg Corporate Center, a one-million-square-foot complex, for about $70 million. The complex had not changed hands since it was developed in the 1980s. And GlenStar has already launched an approximately $30 million renovation program to upgrade it to a true class A asset.

Many town and municipal officials have also begun to realize the importance of office or community amenities. The Colliers team specifically noted the work done by the town of Rosemont. Several years ago, it added MB Financial Park, a collection of restaurants and entertainment outlets. Today, it has the Pearl Street District currently under construction, which will soon add three restaurants and a boutique hotel to the area.

Prock says this project helped motivate Middleton Partners to acquire the two-building, 230,754-square-foot Balmoral Office Campus.