Tag Archives: downtown

Client Success Story: Northwestern Mutual

Published January 28, 2025

Facing an expiring lease and a need for a refreshed office space, Northwestern Mutual partnered with Bradford Allen to explore relocation options. After an extensive market search, it became clear that the best solution was to expand within their existing building. Led by Ben Azulay, the Bradford Allen team negotiated favorable lease terms to expand and relocate to another floor, helping Northwestern Mutual achieve a modern, collaborative office that supports future growth and impresses clients.

Watch the video to hear Jeff Sons, wealth management advisor at Northwestern Mutual, discuss his successful partnership with the Bradford Allen’s Tenant Representation practice.

 

Q4/24 Downtown Chicago Office Market Report

Published January 24, 2025

Bradford Allen is pleased to share with you our latest office market report.

This quarter in the downtown office market:

  • 2024 net absorption was negative 3.6 million square feet, nearly double the negative 1.9 million square feet recorded in 2023.
  • Direct vacancy continued to climb, reaching a record high of 23.2%.
  • The average gross asking rates were $42.85 per square foot.
  • Spec suites and full build-outs continued to outperform the market, accounting for an increasing share of leasing activity—28.6% in 2024 up from 9% in 2019.

 

Chicago Commercial Real Estate – In the News

Published February 27, 2015

Tom’s Recommended Reading for the Week

  1. A Chicago Masterpiece Rediscovered – Even though downtown Chicago has a worldwide reputation for great architecture, many of its treasures suffer from neglect and disinvestment. But an increasing number of businesses believe that occupying historically-significant space can bring a type of prestige that modern office buildings… Globe St.
  2. As Office Space Shrinks, So Does Privacy for Workers – Dafna Sarnoff worked her way up to vice president at American Express and what she remembers as “a desirable office.” Later she was hired by a financial services company — bigger salary, bigger office. Then, in 2012, she was recruited by Yodle, a smaller, newer company that sells online marketing tools for small businesses…. New York Times
  3. Cushman & Wakefield Going Up for Sale – The Italian family that controls Cushman & Wakefield Inc., one of the world’s largest real-estate services firms, is putting the company up for sale as rising property prices push up the value of rivals, according to people familiar with the matter… Wall Street Journal
  4. More New Jobs Are in City Centers, While Employment Growth Shrinks in the Suburbs – For decades, most Americans working in metropolitan areas have gone to work outside city centers – in suburban office parks, stores or plants, not downtown skyscrapers. But as people increasingly choose to live in cities instead of outside them, employers are following…. New York Times
  5. The Smart Way to Create a Transparent Workplace – Transparency. The concept is as simple as it is alluring. By making sure employees conduct their work in plain view—visible in open offices, monitored with sensing technology and tracked through digital activity—companies hope to increase accountability, collaboration, knowledge sharing and innovation… Wall Street Journal
 

Bradford Allen Brokers Nonprofit in Relocation, Expansion

Published February 11, 2014

CHICAGO –   Thresholds, a social service agency providing healthcare, housing, and hope for individuals struggling with mental illnesses, has inked a 8,800 square foot lease at 120 South LaSalle. The Chicago-based nonprofit will continue to operate at 4101 N. Ravenswood Ave and its locations across the city, and will use the new Central Loop location for their executive, finance, and development offices.

Bradford Allen Senior Managing Director Craig Nadborne and Managing Director Sameena Mustafa Basit represented Thresholds in the transaction. Kim Robare of Lincoln Property Group represented the landlord, Teachers Retirement System of Illinois.

“This transaction enabled Thresholds to move into a central location that will accommodate their near and long-term growth,” shared Basit. “120 South LaSalle was able to offer highly adaptable existing conditions and favorable lease terms.”

“We’ve noticed a trend among our nonprofit clients wanting to relocate their executive staff to downtown office buildings,” Nadborne added. “In addition to centralizing business operations, a CBD location offers greater visibility and easier access to donors and board members.”

“Thresholds is thrilled to move some of our team to a downtown location,” says Mark Ishaug, Thresholds CEO. “We look forward to being closer to many of our partners, donors, and board members, as well as providing better access for all of our program staff located throughout the City of Chicago, Blue Island, Kankakee, and McHenry County. Bradford Allen understands the needs of large nonprofit agencies, and it was a pleasure to work with them.”

About Bradford Allen 
Bradford Allen Realty Services, a Chicago-based, national commercial real estate company provides a full array of brokerage services and expertise to entrepreneurial and corporate business entities as well as not-for-profit organizations.  The firm provides real estate strategy, advice, marketing, and transaction execution for occupiers, investors and owners of real estate. For more information please visit our website at www.bradfordallen.com.

 

Second Quarter 2013 Chicago Downtown Office Market Report

Published August 1, 2013

Statistics Remain Stable as Downtown Chicago Office Market Continues to Attract Strong Interest

By most statistical measures, the downtown Chicago office market has remained relatively unchanged for much of the first half of 2013. During the second quarter, the availability rate increased fractionally to 16.7%, while the overall vacancy rate remained unchanged at 12.6%. However, both these metrics illustrate improvement as compared to the previous year. In general, there continues to be a strong bid for quality space, and there have been many cases of both suburban Chicago and out-of area tenants canvassing for space and relocating to downtown Chicago.

Read Full Market Report

 

First Quarter 2013 Chicago Downtown Office Market Report

Published April 1, 2013

Positive Underlying Tone Continues to Characterize Downtown Chicago Office Market

The downtown Chicago office market finished the year on a positive note, and although the pace of improvement has leveled off, the market remains stable with a strong underlying bid for quality space. Overall vacancies declined nominally early this year and ended the first quarter at 12.6%. Stepping back to look at the broader trend, virtually all key market metrics have improved over the past 12 to 18 months. This continues to evidence a slow improving trend since the global economic crisis.

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Fourth Quarter 2012 Chicago Downtown Office Market Report

Published December 1, 2012

Downtown Chicago Office Market Ends 2012 on the Upswing

Despite all the challenges and questions facing the economy, there’s no denying that the downtown Chicago office market has been on the mend and finished the year on a positive note. Overall vacancies declined one full percentage point from the third quarter and ended 2012 at 12.7% down from 13.3% in 2011. This is the lowest year-end vacancy rate since the global economic crisis.

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Third Quarter 2012 Chicago Downtown Office Market Report

Published August 4, 2012

Downtown Chicago Office Market Holds Steady, But Demand Points to Further Improvement Ahead

The downtown Chicago office market ended the third quarter with overall availability and vacancy rates of 17.1% and 13.7%, respectively. Compared with the second quarter both are minor increases which can be attributed to the stagnant economic recovery and firms reducing their square footage to maximize space efficiency. Conversely, a side by side analysis of third quarter 2011 and third quarter 2012 shows improvements in most major metrics—asking rate, net absorption and overall vacancy—demonstrating increased stability in the office market.

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Second Quarter 2012 Chicago Downtown Office Market Report

Published June 4, 2012

Slight Improvement for Downtown Chicago Office Market 

The status quo remains, with the second quarter statistics for the downtown Chicago office market. This is especially true in the context of our current macroeconomic environment that seems perpetually on the edge of crisis.

Throughout the first six months of the year, the overall availability rate in the Chicago CBD office market has remained relatively unchanged, ending the second quarter at approximately 16.9%. Not surprisingly, the downtown vacancy rate also held steady at 13.2%. Although leasing activity has leveled off to a solid (if unspectacular) pace during the first two quarters of 2012, the year-over-year trend in the downtown office market continues to be positive.

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First Quarter 2012 Chicago Downtown Office Market Report

Published March 4, 2012

Steady first quarter for downtown Chicago office market  

As 2011 drew to a close, the recovery in the downtown Chicago office market gained momentum, and the year ended on a positive note. Although activity was not quite as robust during the first quarter as compared to the flurry of activity in late 2011, the overall CBD market still appears to be headed in the right direction. Tenants canvassing for space seem more confident and more willing to make commitments, perhaps echoing the string of upbeat economic indicators and the sharp rally in the domestic equity market during the first three months of the year. Particularly encouraging were the labor market statistics which showed several months of job creation and a declining unemployment rate. For now, continued employment gains will be the key metric that will likely determine the strength of the office market recovery.

Read Full Market Report

 

Fourth Quarter 2011 Chicago Downtown Office Market Report

Published December 4, 2011

2011 finishes on a positive note as the Downtown Chicago office market extends gains 

Without question, 2011 was a year of improvement for the downtown Chicago office market.  Certainly challenges remain, but the overall tone has improved with the re-emergence of stronger demand. In fact, the improvement appears to have accelerated during the fourth quarter as several key metrics posted strong gains.

Read Full Market Report
 

Fourth Quarter 2011 Chicago Suburban Office Market Report

Published December 4, 2011

Improved demand fuels optimism for Suburban Chicago office market

In contrast to the two years immediately following the global financial crisis, the suburban Chicago office market ended 2011 on the upswing. Stronger demand and a healthier overall tone have the real estate community feeling decidedly more optimistic about a genuine recovery.

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Third Quarter 2011 Chicago Downtown Office Market Report

Published September 4, 2011

Downtown Chicago office market recovery continues, but it’s a slow and uneven climb

Despite the spate of disappointing leading economic indicators and persistently high unemployment, the Chicago office market appears to be moving in the right direction, albeit slowly. The overall availability rate in Chicago’s central business district (CBD) remains elevated at 18.4%, but there are some other important statistical measures that offer reasons for cautious optimism.

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Second Quarter 2011 Chicago Downtown Office Market Report

Published June 4, 2011

Downtown Chicago office market continues to exhibit slow, steady improvement during the second quarter

Reflecting a continued slow recovery in the broader economy, the downtown Chicago office market offered up some good news during the second quarter. The availability of direct and sublease space declined during the quarter, and a slight firming of demand helped push down both direct and sublease vacancies. Certainly the level of demand is not robust enough to drive up rental rates materially, but at the same time it is encouraging to see the slow improvement materialize as we recently forecasted. Still, the market remains out of balance favoring tenants as ample supply exists in virtually all downtown locations and across most tiers of space.

Read Full Market Report

 
 

First Quarter 2011 Chicago Downtown Office Market Report

Published March 4, 2011

Bouncing along the bottom: Downtown office market remains stable as it grinds through sublease space

The encouraging streak of recent quarters of positive net absorption did not continue during the first quarter, but we do not think this portends any real deterioration in the market. In fact, we continue to believe that the overall Chicago office market bottomed in early 2010, and any prolonged economic improvement will ultimately be reflected in the statistics over the medium term.

Read Full Market Report

 
 

Fourth Quarter 2010 Chicago Downtown Office Market Report

Published December 4, 2010

Year-end conditions show mixed results, but signs are pointing to a slow recovery

The commercial office market in Chicago’s central business district (CBD) appears to have bottomed out in 2010. The overall annual net absorption rate (the net change in occupied space) and increased sales activity seem to indicate a slowly reviving market. Annual net absorption turned slightly positive in 2010 in contrast to the over 2.3 million SF of negative net absorption recorded at the end of 2009.

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Second Quarter 2010 Chicago Downtown Office Market Report

Published June 4, 2010

Office Market Continues to Show Signs of Stabilization
Investor confidence revisits the marketplace

Vacancy Starts to Stabilize
Indicators show the Central Business District (CBD) is steadying as we navigate the bottom of the downturn. Overall vacancy decreased nominally in the sec ond quarter to 15.9%, from 16.0% posted in the first quarter, but still higher than the 15.0% overall vacancy rate at the beginning of the year. Sublease vacancy saw a decline as well, to 1.8%, a 0.1 percentage point decline from first quarter, and a 0.3 percentage point decrease over the first half of 2010.

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First Quarter 2010 Chicago Downtown Office Market Report

Published March 4, 2010

Has The Market Stabilized?
Market indicators still lagging economic optimism

Vacancy Continues to Rise
The overall vacancy rate in the Chicago Central Business District (CBD) rose to 16.0% for the first quarter of 2010, a 4.4 percentage point jump over the first quarter of 2009, and a 1.0 percentage point jump over the year-end 2009 rate of 15.0%. This is the highest overall vacancy rate in the CBD since the third quarter of 2005 when it reached 15.9%.

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Fourth Quarter 2009 Chicago Downtown Office Market Report

Published December 4, 2009

CBD Downturn: Have We Hit Bottom?
Market turnaround expected to take place in 2011 

New Construction Adds to Increase of Available Space
Overall availability in the Chicago Central Business District (CBD) rose to 17.8% at year-end 2009, a 6.4 percentage point increase compared to the same time last year, marking the highest percentage available in four and a half years. Availability in the River North submarket increased 6.8 percentage points in 2009. This was the largest jump in a CBD submarket with a large portion resulting from the completion of 300 North LaSalle Street and 353 North Clark Street during the year.

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Second Quarter 2009 Chicago Downtown Office Market Report

Published June 4, 2009

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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First Quarter 2009 Chicago Downtown Office Market Report

Published March 4, 2009

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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Fourth Quarter 2008 Chicago Downtown Office Market Report

Published December 4, 2008

CBD Downturn Has Begun
Chicago’s CBD office market shows clear indications of a downturn,which is likely to last through 2009.

Rental Rates Are Dropping
After two years of steady increase, CBD rental rates are dropping, and show signs of dropping further in 2009. While the current average asking rate, $30.11 gross per square foot, is nearly even with the third quarter average asking rate of $30.13, landlords are signing leases at lower rates and offering increased concession packages. If the next two quarters do not produce new leases, asking rates are likely to drop as well.

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Third Quarter 2008 Chicago Downtown Office Market Report

Published September 4, 2008

CBD Market will Decline through 2009
While the Chicago’s CBD office market remains strong, activity has slowed, rates are dropping, and market is poised for a downturn

Flattening Rental Rates
The current average asking rate, $30.13 gross cost per square foot, is slightly down from last quarter’s all-time high of $30.16, and ends 6 consecutive quarters of increasing rates.  Asking rental rates are likely to hold steady for the next few months, as landlords wait to see what impact the ongoing financial crisis will have on the Chicago market.

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Second Quarter 2008 Chicago Downtown Office Market Report

Published June 4, 2008

Rents Hit Another Record High
Leasing activity was strong in the 2nd quarter, but a struggling economy,new construction and increasing sublease supply point to a downturn.

Record Rental Rates
The current average asking rate, $30.15 PSF Gross, is another record high, and the 6th consecutive quarterly increase in rates. Rental rates will continue to rise over the next few quarters, and are not likely to drop before several quarters of poor performance force landlords to modify their expectations.

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First Quarter 2008 Chicago Downtown Office Market Report

Published March 4, 2008

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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