CHICAGO—The direct vacancy rate among the Chicago CBD's top office properties increased by 160 bps in the second quarter to 10.6%, according to a mid-year report from MB Real Estate. Meanwhile, the overall direct vacancy for the CBD increased to 11.6% at the end of the second quarter, a 50 bp increase from the previous quarter.
MBRE publishes a study each quarter on last 30 class A office buildings greater than 300,000 square feet built in the CBD. The company calls this set of buildings, which contains some of the city's most desirable space, “a leading indicator of office market conditions.”
Its researchers attribute the rise in vacancy for these trophy properties to two recent relocations that also show the trend toward downsizing is not yet over. Societe Generale moved from about 130,000 square feet at 550 W. Jackson into about 52,000 square feet at 440 S. LaSalle, and Seyfarth Shaw moved from about 300,000 square feet at 131 S. Dearborn into 200,000 square feet at 233 S. Wacker.
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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.
