CHICAGO—Suburban Chicago tenants were relatively active in the first quarter, leading to 319,986 square feet of positive absorption and a 19 bp decrease in the overall direct vacancy rate, according to a new market report from MBRE. The suburban region's rate was 21.47% by the end of the first quarter.
MBRE data show 20 suburban deals larger than 15,000 square feet were signed, for a combined total of 705,046 square feet. Perhaps more impressive the overall average direct gross asking rent for the suburbs increased by 9.7% in the past year to $22.13.
Class A properties in the East-West submarket continue to outperform all other categories in the region. The vacancy rate for this grouping declined about 130 bps to 17.6% in just one quarter, the fastest drop in the suburbs. And class A tenants there absorbed another 265,243 square feet while class A buildings in the Northwest submarket and O'Hare lost ground.
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