First Quarter 2008 Chicago Downtown Office Market Report

Market will Remain Tight Through 2008
While tenants are slowing their leasing activity to see if better terms will be available later this year, vacancy remains low and rents continue to rise.

In contrast to clear indications of recession in other parts of the country, the Chicago downtown offi ce market continues to look healthy. Leasing activity over this quarter was slower than in the 4th quarter of 2007, but tenants are not putting space back on the market. Available sublease space, an early indicator of a change in the leasing market, took another drop to 1,333,173 square feet, its lowest point since 2nd quarter of 1999. Rental rates are at an all-time high, and continue to rise.

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