During the first half of 2017 Chicago has seen an increase of almost 7000 employees in the downtown area. Most of this is due to an influx of companies from suburban Chicago and the expansion of the tech sector. Additionally, as the amount of available space decreases the rent is trending upwards.
Below is an article from rejournals.com that describes the current office space climate in Chicago. New construction as well as re-evaluation of space usage is having an impact on the decisions companies are making concerning their office space. After reading the article, give us a call at Caton Commercial to schedule a time to meet with you and create the best strategy for office space for your company.
Source: rejournals.com | Re-Post Caton 8/17/2017
In the last six months, office-using employment in Chicago has increased with more than 6,800 jobs and along with that the leasing activity has grown 35 percent to 2.7 million square feet in the second quarter, according to an office report from Savills-Studley released in August.
Office leasing activity also jumped up in the second quarter to 2.7 million square feet, which exceeds the long-term market average of 2.3 million square feet. Class A availability closed mid-year at 16.2 percent and has exceeded 15 percent every quarter since the first quarter of 2016.
Rents have pushed higher as well, in part due to the high percentage of new product and because landlords remain confident. Their confidence is bolstered by the influx of companies from suburban Chicago and the expansion of the tech sector. Employers in the area, such as Allstate, who said it will bring 400 tech jobs to its innovation center at the Mart.
The new construction also allows companies to reevaluate how they use space and truly optimize their office for efficiency. Some have been able to reduce their occupancy by as much as 20 percent, according to the Savills-Studley report.