Monthly Archives: March 2009

First Quarter 2009 Chicago Downtown Office Market Report

CBD Downturn Continues
Chicago’s CBD office market downward trend picks up the pace and is unlikely to show signs of recovery before 2010.

Rental Rates Moving Lower
CBD rental rates moved lower and the trend points to a continuing drop through the second quarter. The current average gross asking rate, $29.59 per square foot, represents a 1.7% reduction from the fourth quarter average gross asking rate of $30.11 per square foot. Many landlords are agreeing to rents more than 10% below their asking rates, as well as offering more generous concession packages. All indications are that asking rents will continue to fall through 2009 while concessions such as rent abatements and tenant improvement allowances will continue to increase.

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First Quarter 2009 Chicago Suburban Office Market Report

Market Continues to Decline
Rental rates continue to drop, and vacancies are increasing at a faster rate. With no signs of recovery before 2010, landlords offer larger concessions.

Rental Rates Are Dropping
Asking rental rates in all suburban submarkets continue to drop as Landlord’s adjust to the new economic climate and compete against the growing flood of sublease space . The first quarter gross average asking rental rate of $20.53 represents a drop of nearly $0.50 per square foot over the last three quarters. As layoffs increase and sublease space continues to rise over the next few months, asking rates are likely to drop further.

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