Monthly Archives: June 2009

Second Quarter 2009 Chicago Downtown Office Market Report

CBD Downturn Slows Its Pace
As the market downturn decelerates, more tenants are entering the market early to examine their options. Are we approaching the bottom?

Downturn continues – but is not accelerating
CBD rental rates moved lower and the trend points to a continuing drop through the year, but at a slower rate. The current average gross asking rate, $28.97 per square foot is a $0.62 drop from first quarter when the average gross asking rate was $29.59 per square foot. The previous quarter saw a drop of $0.52 per square foot.
The second quarter 2009 year-to-date net absorption is negative 2,157,607 square feet. In contrast, the second quarter of 2008 year-to-date net absorption was positive 1,290,948 square feet.

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Second Quarter 2009 Chicago Suburban Office Market Report

A Slow Road to Recovery in the Suburbs
With available space at an all time record, office space bargains are everywhere.  Vacancy is likely to rise slightly over the next few quarters during the recovery.

Rental Rates Hold Steady
Asking rental rates in the suburban market have held nearly even with last quarters’ rates. The second quarter gross average asking rental rate of $20.57 represents a rise of four cents per square foot over the first quarter. With record availability rates and continued layoffs throughout the suburbs, rates are likely to continue to drop.

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