Market Snapshot: Chicago CBD and Suburbs Q2 2020

July 01, 2020

The CBD office market had 38,175 sf of positive absorption in the second quarter. The direct vacancy rate increased by 72 basis points to 13.41% due to unleased new inventory added to the market. The amount of available sublease space increased by 424,848 sf to a total of 3.7 million sf, bringing the total vacancy rate to 15.94%. Chicago’s suburban office market experienced 372,953 square feet of negative absorption in the second quarter, and a direct vacancy rate of 20.6%. MBRE Leasing and investment sales activity was slow this quarter, as pandemic-related economic uncertainty caused companies to reevaluate their plans for the future.

Market Index: Chicago CBD Q2 2020

June 04, 2020

The direct vacancy rate of the MBRE Index decreased by 3.4 percentage points to 6.9% since the last index report. The Index vacancy rate decreased by such a large margin because the buildings included in the inventory changed, with a new 553,412-sf development replacing the oldest building in the Index, a 1.3-million-sf building. The Index will continue to change as three new buildings replace older buildings upon completion later this year.

Market Overview: Chicago and Suburbs Q1 2020

April 20, 2020

There was a total of 625,394 square feet of positive absorption in the CBD in the first quarter of 2020. The overall direct vacancy rate in the CBD decreased by 11 basis points to 12.69% at the end of the first quarter from 12.80% at the end of the fourth quarter. The overall direct vacancy rate for the suburbs increased by 46 basis points from 20.10% in the fourth quarter to 20.56% at the end of the first quarter of 2020, and there was a total of 284,680 square feet of negative absorption in the suburban market. The office market is expected to undergo significant changes in the near and long term future as the coronavirus pandemic causes a major economic downturn and requires a transformation of social and business interactions. MBRE Research will continue to closely monitor the trajectory of the Chicago office market.

Market Snapshot: Chicago and Suburbs Q1 2020

April 06, 2020

In the first quarter of 2020, there was 625,394 square feet of positive absorption In Chicago’s Central Business District, and a direct vacancy rate of 12.7%, an 11-basis-point decrease from the end of 2019. This strong start to the year will certainly be affected by COVID-19 in the second quarter. Chicago’s suburban office market went in a different direction with 284,680 square feet of negative absorption in the first quarter, and a direct vacancy rate of 20.6%, a 46-basis-point increase from the end of 2019. MBRE Research will continue to monitor the direction of the local office market.

Market Index: Chicago and Suburbs Q1 2020

March 02, 2020

The direct vacancy rate of the MBRE Index decreased by 70 basis points to 9.7% since the last index report. At least four new office developments will be added to the index in 2020: 333 N. Green, the Macy’s redevelopment, 110 N. Wacker, and 167 N. Green.

Market Overview: Chicago and Suburbs Q4 2019

January 31, 2020

The CBD’s office market ended the year with another strong quarter. There was 823,378 square feet of positive absorption bringing the total absorption for 2019 to 2,057,655 square feet, the most absorption seen since 2007. There was plenty of leasing activity, setting the CBD up for a strong 2020 as well. Meanwhile, the suburban office market had only 64,625 square feet of positive absorption in the fourth quarter, finishing the year with a net absorption of negative 441,934 square feet. Suburban leasing activity continues to be sluggish.

Market Snapshot: Chicago and Suburbs Q4 2019

January 14, 2020

MB Real Estate has released the 4th Quarter Market Snapshot for 2019, a quarterly report published by our Research team on the Chicago CBD and suburbs. There was a total of 823,378 square feet of positive absorption in the Chicago CBD in the fourth quarter, bringing the 2019 total up to 2 million square feet—the most absorption the CBD has seen since 2007. The vacancy rate increased by 95 basis points to 12.80% due to new inventory. Meanwhile, the overall direct vacancy rate for the suburbs decreased by 24 basis points to 20.1 percent in the fourth quarter and there was a total of 64,626 square feet of positive absorption, which brought total absorption for 2019 to negative 441,934 square feet.

Best of 2019: Top Commercial Real Estate Deals

December 16, 2019

MB Real Estate’s research team has compiled the Best of 2019, a list comprised of the 10 highest-profile commercial real estate transactions in the Chicago region. We’ve listed deals that include the largest investment sale, the largest company migration to the CBD, the most expensive sale in Chicago history, and more.

Market Index: Chicago and Suburbs Q4 2019

November 20, 2019

The MBRE Index is comprised of the last 30 office buildings greater than 300,000 square feet built in the CBD, and serves as a leading indicator of office market conditions. Tenants began moving into the Old Post Office redevelopment in October and the building has been added to the MBRE Index. The addition of the Old Post Office, which is 56 percent leased, increased the direct vacancy of the MBRE Index by 2.9 percentage points to 11.6 percent since the last index report.

Market Overview: Chicago and Suburbs Q3 2019

October 25, 2019

There was a total of 711,494 square feet of positive absorption in the CBD in the third quarter of 2019 bringing the year to date total to 1,234,278 square feet. The overall direct vacancy rate in the CBD decreased by 61 basis points in the third quarter to 11.84 percent. The overall direct vacancy rate for the suburbs decreased by 15 basis points to 20.34 percent in the third quarter and there was a total of 164,344 square feet of positive absorption.

Market Snapshot: Chicago and Suburbs Q3 2019

October 02, 2019

The CBD’s total absorption for 2019 is up to 1.2 million square feet and the direct vacancy rate is down to 11.8%. The pace of investment sales continued to be slow in the third quarter, but Chicago’s all time highest price per square foot was paid for an office building in Fulton Market. The Post Office redevelopment has been attracting the largest new deals, with Uber signing on for 463,000 square feet. In the third quarter, vacancy decreased to 20.3% and there was 164,344 square feet of positive absorption in the Chicago Suburbs.

Market Index: Chicago and Suburbs Q3 2019

August 30, 2019

The Market Index is a quarterly report published by our Research team that analyzes the state of Chicago's office market based off of MBRE's proprietary vacancy index. The index includes the last thirty Class-A buildings greater than 300,000 square feet constructed in the city's Central Business District (CBD).

Market Overview: Chicago and Suburbs Q2 2019

July 31, 2019

There was a total of 307,841 square feet of positive absorption in the CBD in the second quarter of 2019 bringing the year to date total to 522,784 square feet. The overall direct vacancy rate in the CBD decreased by 20 basis points in the second quarter to 12.45 percent. The overall direct vacancy rate for the suburbs decreased by 30 basis points to 20.49 percent in the second quarter and there was a total of 61,451 square feet of negative absorption.

Market Snapshot: Chicago and Suburbs Q2 2019

July 02, 2019

There was a total of 307,841 square feet of positive absorption in the CBD in the second quarter of 2019. The overall direct vacancy rate in the CBD decreased by 20 basis points to 12.45 percent. There was very little investment sales activity in the second quarter, but 15 properties were put on the market, including Amtrust’s seven property portfolio.Total inventory decreased in the Chicago suburbs during the second quarter, while direct vacancy increased.

Market Index: Chicago and Suburbs Q2 2019

May 28, 2019

The Market Index is a quarterly report published by our Research team that analyzes the state of Chicago's office market based off of MBRE's proprietary vacancy index. The index includes the last thirty Class-A buildings greater than 300,000 square feet constructed in the city's Central Business District (CBD).

Market Overview: Chicago and Suburbs Q1 2019

May 08, 2019

The Chicago CBD office market remained healthy in the first quarter of 2019, with significant leasing activity and an overall direct vacancy rate of 12.7 percent. However there will be approximately 8 million square feet of new inventory added to the market in the next four years, which is likely to cause vacancy rates to rise. Suburban vacancy rates increased and there was negative absorption across all submarkets in the first quarter of 2019. Class A gross market rents continue to rise in the suburbs, and older inventory is being taken off the market through demolition or redevelopment.

Market Beat: The Chicago Advantage Fuels Tech Growth April 2019

April 11, 2019

Tech companies are an increasingly important part of the Chicago office market as the city is poised to become a tier one tech destination. Read our full report to learn more.

Market Snapshot: Chicago and Suburbs Q1 2019

April 01, 2019

Chicago’s CBD office market had a slow but steady start to 2019, with 214,943 square feet of positive absorption, while Chicago’s suburban office market slid downhill quickly with 609,454 square feet of negative absorption. Vacancy rates in the CBD and Suburban markets remain stable as the CBD continues to add new inventory and the suburban market has obsolete inventory taken off the market.

Market Index: Chicago and Suburbs Q1 2019

February 25, 2019

The Market Index is a quarterly report published by our Research team that analyzes the state of Chicago's office market based off of MBRE's proprietary vacancy index. The index includes the last thirty Class-A buildings greater than 300,000 square feet constructed in the city's Central Business District (CBD).

Market Overview: Chicago and Suburbs Q4 2018

January 31, 2019

Chicago’s CBD office market finished the year with a strong fourth quarter, experiencing 161,805 square feet of positive absorption, bringing the year’s total absorption to 1.3 million square feet. However, the vacancy rate increased by 9 basis points due to new inventory in River West. In Chicago's Suburban office market, the suburban-to-urban migration trend continued in 2018, with Walgreens and Ferrara Candy signing large leases at the Post Office redevelopment in Chicago’s West Loop. If this trend continues, suburban landlords will continue to feel the squeeze from losing large tenants to the CBD. Read our full report to learn more.

Market Beat: 4Q 2018

January 02, 2019

MBRE's Q4 Market Beat explores popular and upcoming certifications for commercial buildings that owners can use to bolster investments and attract premium tenants.

Market Snapshot: Chicago and Suburbs Q4 2018

January 03, 2019

Chicago’s CBD office market finished the year with a strong fourth quarter, experiencing 161,805 square feet of positive absorption, bringing the year’s total absorption to 1.3 million square feet. However, the vacancy rate increased by 9 basis points due to new inventory in River West. Chicago’s suburban office market also rallied in the fourth quarter, with 338,200 square feet of positive absorption, and overall direct vacancy decrease of 36 basis points.

Market Index: Chicago and Suburbs Q4 2018

November 26, 2018

The Market Index is a quarterly report published by our Research team that analyzes the state of Chicago's office market based off of MBRE's proprietary vacancy index. The index includes the last thirty Class-A buildings greater than 300,000 square feet constructed in the city's Central Business District (CBD).

Market Overview: Chicago and Suburbs Q3 2018

October 29, 2018

Chicago’s CBD office market is returning to equilibrium after the recent additions of new inventory. The direct vacancy rate decreased by 1 basis point to 12.5 percent, with an overall total of 6,895 square feet of positive absorption. The Chicago suburban office market had 572,247 square feet of negative absorption and a 70 basis point increase in the overall direct vacancy rate, ending the quarter at 20.92 percent.

Market Beat: Q3 2018

September 28, 2018

MBRE's Q3 Market Beat reviews upcoming bank relocations and their effect on the Central Loop.

Market Snapshot: Chicago and Suburbs Q3 2018

October 02, 2018

The Chicago Market Snapshot provides a quick, comprehensive glance at the state of Chicago's suburban office market.

Market Index: Chicago and Suburbs Q3 2018

August 23, 2018

The Market Index is a quarterly report published by our Research team that analyzes the state of Chicago's office market based off of MBRE's proprietary vacancy index. The index includes the last thirty Class-A buildings greater than 300,000 square feet constructed in the city's Central Business District (CBD).

Market Overview: Chicago and Suburbs Q2 2018

July 30, 2018

The Chicago Suburban office market had a surprisingly strong second quarter with 871,534 feet of positive absorption and a 1.25 percentage point decrease in the overall direct vacancy rate. However, without significantly more leasing activity, the market cannot be expected to improve substantially in the upcoming years.

Market Beat: Q2 2018

June 27, 2018

MBRE's Q2 Market Beat explores coworking's rapid expansion in Chicago and around the country, and how this trend will continue to radically transform the office market.

Market Snapshot: Chicago and Suburbs Q2 2018

July 02, 2018

The Chicago Market Snapshot provides a quick, comprehensive glance at the state of Chicago's downtown office market.

Market Index: Chicago and Suburbs Q2 2018

May 21, 2018

The Market Index is a quarterly report published by our Research team that analyzes the state of Chicago's office market based off of MBRE's proprietary vacancy index. The index includes the last thirty Class-A buildings greater than 300,000 square feet constructed in the city's Central Business District (CBD).

Market Overview: Chicago and Suburbs Q1 2018

May 03, 2018

Chicago's suburban office market had a positive first quarter, with 319,986 square feet of positive absorption and a 19 basis point decrease in the overall direct vacancy. Despite a good start to the year, the suburban office market still has a significant number of large vacancies. These office developments will need substantial rehabs and added amenities in order to be competitive with today's tenants. Read our full report to learn more.

Market Beat: Q1 2018

March 27, 2018

Although Chicago's Suburban office market has struggled to bounce back since the recession, there are clear reasons to be optimistic about its future performance despite what the current data suggests. However, the market is now dominated by businesses looking for quality over quantity, meaning owners of the largest available blocks need to get creative in their approach to finding new tenants.

Market Snapshot: Chicago and Suburbs Q1 2018

April 02, 2018

The Chicago Market Snapshot provides a quick, comprehensive glance at the state of Chicago's downtown office market.

MBRE Update: 1st Quarter 2018 Shadow Space

March 08, 2018

The MBRE Update covers current topics in the Chicago office market and provides an updated analysis of MBRE's previous research. In September of 2017, we determined that new developments created approximately 1.6 million square feet of shadow space. This report analyzes how much of that shadow space is now vacant and how much is left now that those developments are completed and more are underway.

Market Index: Chicago and Suburbs Q1 2018

March 07, 2018

The Market Index is a quarterly report published by our Research team that analyzes the state of Chicago's office market based off of MBRE's proprietary vacancy index. The index includes the last thirty Class-A buildings greater than 300,000 square feet constructed in the city's Central Business District (CBD).

2017 4th Quarter Chicago CBD & Suburban Combined Market Overview

February 21, 2018

Chicago’s CBD office market remained strong in the fourth quarter of 2017, while the suburban office market also had a surprisingly strong quarter. The two office markets had direct vacancy rates of 12.26 percent and 21.7% and positive absorption of 177,463 and 622,493 square feet, respectively.

2017 4th Quarter Chicago Suburban Market Overview

February 21, 2018

The Chicago suburban office market had a surprisingly strong quarter, with 622,493 square feet of positive absorption, bringing the 2017 total up to 169,551 square feet. The overall direct vacancy rate decreased from 21.8 percent at the end of the third quarter to 21.7 percent.

2017 4th Quarter Chicago CBD Market Overview

January 25, 2018

Chicago’s CBD office market remained strong in the fourth quarter of 2017 with a direct vacancy rate of 12.26 percent and 177,463 square feet of positive absorption. Total absorption for the year was 924,580 square feet, while the direct vacancy rate increased by 91 basis points from 11.4 percent at the end of 2016 due to increased inventory.

2017 4th Quarter CBD Snapshot

January 03, 2018

The Chicago Market Snapshot provides a quick, comprehensive glance at the state of Chicago's downtown office market.

2017 4th Quarter Market Beat

December 20, 2017

The Market Beat is a quarterly report published by our Research team providing insight on a developing trend in Chicago's Central Business District (CBD) office market. This quarter's report covers the recent disappearance of much of downtown's class-C inventory.

2017 4th Quarter Market Index

November 13, 2017

The Market Index is a quarterly report published by our Research team that analyzes the state of Chicago's office market based off of MBRE's proprietary vacancy index. The index includes the last thirty Class-A buildings greater than 300,000 square feet constructed in the city's Central Business District (CBD).

2017 3rd Quarter Chicago Suburban Market Overview

November 02, 2017

The Chicago Market Overview for the city's suburbs is a comprehensive quarterly report on the current state of the suburban office market. MB Real Estate's Research team combines detailed data with timely insight to give clients an up-to-date market outlook and forecast.

2017 3rd Quarter Chicago CBD Market Overview

October 18, 2017

The Chicago Market Overview for the city's Central Business District (CBD) is a comprehensive quarterly report on the current state of the CBD office market. MB Real Estate's Research team combines detailed data with timely insight to give clients an up-to-date market outlook and forecast.

2017 3rd Quarter CBD Snapshot

October 02, 2017

The Chicago Market Snapshot provides a quick, comprehensive glance at the state of Chicago's downtown office market.

2017 3rd Quarter Market Beat

September 26, 2017

The Market Beat is a quarterly report published by our Research team providing insight on a developing trend in Chicago's Central Business District (CBD) office market. This quarter's report covers the next wave of new office projects coming soon to downtown.

2017 3rd Quarter Market Index

August 24, 2017

The Market Index is a quarterly report published by our Research team that analyzes the state of Chicago's office market based off of MBRE's proprietary vacancy index. The index includes the last thirty Class-A buildings greater than 300,000 square feet constructed in the city's Central Business District (CBD).