Overall the Chicago Office market had a positive net absorption of 2,398,767 square feet in the fourth quarter of 2015. There were some big tenants that created large blocks of space: AT&T (368,000 SF), Solo Cup Company (126,713 SF) and Panasonic USA (126,284 SF)
The vacancy rate decreased to 13.1% from 13.5% in the third quarter 2015 and 13.9% at the end of the first quarter of 2015. With the reduction of vacancy the rental rate had increased by 1.3% from the third quarter to the fourth quarter ending at an average $23.28 per square foot. The suburban market ended 2015 with an average $19.35 per square foot rental rate up from $18.92 per square foot in the third quarter.
Cap Rates in 2015 averaged 7.10% compared to in 2014 the Cap rate averaged 7.67%.
Submarket
East-West Tollway
North Suburban
Northwest Suburbs
O'Hare
South Suburbs
West Cook
TOTAL
Gross Bldg SF
40,887,587
22,034,553
26,956,204
13,252,102
2,453,729
1,098,104
106,682,279
Vacancy Rate
18.3%
17.6%
20.8%
15.9%
23.3%
30.8%
18.4%
Average Asking Gross PSF
$21.79
$24.27
$20.20
$24.01
$15.43
$19.67
$21.92
2015 Ended With Lower Vacancy and Higher Rental Rates
statistical information provided by CoStar Chicago Office Market Report Year End 2015 & CBRE Marketview Chicago Suburban Office Q4 2015
Kristian is a licensed Illinois Commercial Real Estate broker with over 10 years’ experience working with small to medium sized businesses locally and nationally as well as owners of real estate from office, retail to industrial at Suburban Real Estate Services, Inc.. in Lisle, IL. Kristian specializes in branding each property he represents through different marketing tactics, boots on the ground and the latest technologies gained from his experience of marketing rock bands to commercial properties. For each tenant representation assignment he becomes his client's "in-house" broker walking them through the process from initial meeting till occupancy. He is the founder of Commercial Main N State, a blog providing tips and market rental trends to small businesses on #CRE. He currently is the 2014-2016 Chair of the Mainstreet Organization of Realtors® Commercial Alliance.
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