Direct vacancies remained flat in Chicago’s downtown office market from the previous quarter, and absorption rebounded considerably, suggesting the CBD office market continues to regain its footing, according to a recent report by Bradford Allen.
While led by the West Loop submarket, approximately 1.8 million square feet of leases were signed over the past three months. The Chicago CBD recorded a 24.4% direct vacancy rate, slightly lower but in line with last quarter’s record high. Meanwhile, the negative 173,000 square feet of absorption was a drastic improvement from the second quarter’s negative 1.7 million square feet. Buoyed by its good transit access and amenity-forward towers, the West Loop accounted for approximately 41% of new leasing.
“The latest data suggests signs of stabilization across Chicago’s downtown office landscape,” said Neil Bouhan, senior managing director of research at Bradford Allen. “With vacancies holding steady and leasing volume remaining strong, tenants are signaling greater confidence, hinting that recovery continues.”
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