Avison Young’s First Quarter 2023 Office Market Report for downtown Chicago reveals that vacancy in trophy buildings has decreased to 7.5%, as the flight to quality persists. Additionally, the average spread between base rent and net effective rent provided by landlords to sustain office demand has increased to 18.2%, while 50% of CMBS loans remain in good standing, adding pressure on the market.
“Despite a challenging start this year, we will continue uncovering beneficial opportunities for both occupiers and owners as the market continues adapting,” said Damla Gerhart, managing director of Avison Young’s Chicago office. “Tenants are still focused on luring their workers back into offices by making upgrades and being intentional about fostering connectivity amongst personnel; landlords are still offering large concession packages and upgrading amenities that support today’s work environment.”
