Quality remains king in Chicago office market
![Quality remains king in Chicago office market](https://www.avisonyoung.us/documents/91120/74664916/0J1A9657-2.jpg/663976c3-ce96-dd19-1589-7c0aef094ce0?t=1689866270422)
Avison Young releases Q2 2023 Chicago CBD Market Report
Chicago, IL – Avison Young today released its Second Quarter 2023 Office Market Report for Chicago’s Central Business District (CBD). The report indicates that vacancy in trophy buildings remains significantly lower, 14%, versus class A and B buildings, which sit above 20%, the average spread between base rent and net effective rent in trophy and class a properties provided by landlords to maintain office demand has only fallen by .4% over last quarter, and that decreasing demand and rising rates continue to build pressure on buildings with CMBS loans.“Quality remains the driving force in leasing activity for Chicago’s CBD,” said Damla Gerhart, Principal and Managing Director of the firm’s Chicago office. “Trophy assets are seeing significantly lower vacancies, however, the unoccupied space in new deliveries, like Salesforce Tower, is driving this figure up.”
The report also indicates that despite stable market rents, the growing trend among landlords to offer substantial concession packages has continued to decrease net effective rates across the market.
Avison Young creates real economic, social and environmental value as a global real estate advisor, powered by people. As a private company, our clients collaborate with an empowered partner who is invested in their success. Our integrated talent realizes the full potential of real estate by using global intelligence platforms that provide clients with insights and advantage. Together, we can create healthy, productive workplaces for employees, cities that are centers for prosperity for their citizens, and built spaces and places that create a net benefit to the economy, the environment and the community.
Avison Young is a 2023 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for 12 consecutive years.
Media contact:
- Nathan Reyna, Media Relations Specialist, Midwest & Northeast: +1.972.533.1396
For more information: