While the Chicago West Loop continues the momentum that started in 2017 as a prominent place for commercial real estate, River North has the lowest vacancy rate in the downtown submarkets. This is positive news for real estate owners. This low vacancy rate, however, can drive the cost of leasing upwards.
Below is an article from globest.com that details the trends for leasing commercial real estate in downtown Chicago, especially as tenants move west or north, the central loop has become more affordable and desirable. After reading the article, give us a call at Caton Commercial so we can assist you in finding the commercial real estate that fits both your needs and your budget.
Source: globest.com | Re-Post Caton Commercial 2/22/2018
The Chicago office market posted a solid performance in the fourth quarter with an uptick in absorption and falling vacancy while rents held firm, according to a new report. Net absorption totaled 488,960 square feet, and River North, at 7.1%, has by far the lowest vacancy rate of the four downtown submarkets. Overall market vacancy stands at 11.6%.
Like most of the nation’s top markets, tech remains an important driver of demand in Chicago. In fact, it has helped ease the pain of many landlords that lost tenants to the West Loop’s new trophy towers.
“The Central Loop has done surprisingly well landing younger tech companies looking to pay a bit less than they would for space in River North,” a research analyst tells GlobeSt.com.
The opportunities to take over space in the Central Loop has come about largely because so many of its major tenants moved to West Loop properties near the river. 444 W. Lake, for example, which opened in the fourth quarter of 2016, landed law firms McDermott, Will & Emery and DLA Piper as anchor tenants. Central Loop landlords may have needed aggressive deals to fill their spaces but “tech has been the one driver of growth in the Central Loop.”