Bradford Allen’s latest “CRE Pulse” report reveals the surprising resilience of the suburban Chicago office market. Despite a current vacancy rate of 25%, further analysis shows that active properties are actually much more competitive than initial figures suggest.
Of the roughly 23 million square feet of empty space in Chicago’s suburbs, about 17.2 million square feet is concentrated in just 20% of office properties. When these largely vacant properties are excluded from consideration, the remaining 80% have an average vacancy rate of only 10%. This indicates that many suburban offices continue to thrive despite changing market conditions.
The report also highlights how size plays a significant role in today’s market transformation. For instance, demand for spaces between 1,000 and10,000 square feet – currently the most popular size requested by tenants – has led to a low vacancy rate of just6%. Additionally, tenants strongly prefer move-in-ready spaces with nearly30%of leased footage being for such suites in2023compared to11%in2019.
Don’t miss out on Connect Midwest: Multifamily,Affordable Student & Senior Housing Trends on June4th2024 at W-Chicago City Center Hotel where G.Joseph Cosenza,Vice Chairmanof The Inland Real Estate Group LLC and PresidentofInland Real Estate Acquisitions LLC will receiveaLifetime Achievement Awardand participateina Keynote Interview.Register nowto network with industry peers!This event is hosted by Connect CRE.
