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Suburban Office Market Now Split Into Two

Beyond the empty, obsolete office campuses, several areas of the suburbs are quite healthy.

chi-scc (6) The Schaumburg Corporate Center, a three building, one-million-square-foot complex, was recently acquired by GlenStar for $70 million. It plans to spend $30 million on an upgrade, a sign that investors have a lot of confidence in properties near Woodfield Mall.

CHICAGO—Chicago’s suburban office market has struggled ever since the start of the recession. While the CBD came roaring back to life, the suburbs have continued to see businesses pull up stakes and head for new offices downtown. Furthermore, the remaining tenants have continued to “right-size” their office space, putting another drag on leasing activity.

However, beyond the empty, obsolete office campuses, several areas of the suburbs are quite healthy. Many tenants remain committed to suburban locations, and that in turn has led investors to buy up some properties in the region. Therefore, instead of using overall market data to evaluate the suburban market, or even looking at data from the submarket level, it’s now more helpful to separately analyze the portions of various submarkets. And the outlook in some is quite hopeful.

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Brian J. Rogal

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.

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