Search
 

Vacancy Ticks Up in Top Office Towers

The leasing at the newest trophy properties has been robust, and has also opened up vacancies elsewhere.

By Brian J. Rogal | Updated on November 14, 2017

chi-riverpoint (2) Hines’ River Point development at 444 W. Lake St. opened about one year ago, and has attracted tenants from other top buildings.

CHICAGO—The vacancy rate among the CBD’s top office properties has finally started to tick up as many tenants left behind empty spaces after moving into downtown’s newest trophy buildings. That was the conclusion of researchers from MB Real Estate, who just released their latest index report, which examines the CBD’s 30 newest class A buildings with more than 300,000 square feet. This set of buildings, which contains some of the CBD’s most desirable space, serves as a leading indicator of office market conditions.

Direct vacancy in the index buildings increased by 83 bps to 11.4% percent. Meanwhile, the CBD’s overall direct vacancy increased to 12.2% at the end of the third quarter of 2017, a 67 bps increase from the previous quarter.

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.