Bradford Allen is pleased to share with you our latest office market reports. Chicago’s downtown office market remained dynamic amid distress in Q1/22 as the flight-to-quality trend continued. With a direct vacancy rate above 18%, rising sublet availability, high-profile properties in distress and ample new deliveries, tenants are finding enticing concessions. Digging beneath the headline statistics, we note:
The direct vacant and available rate was slightly lower (14.9%) than last quarter (15.2%).
Net absorption turned negative after a positive Q4/21, but demand is robust for Class A space in red-hot submarkets
Sublet availability is skewed toward Class B buildings.
Class B buildings comprise the majority of properties with troubled loans.