River North: Demand increases, 300 N. LaSalle under contract

The River North Submarket experienced the greatest increase in demand as the direct vacancy rate dropped from 16.4 percent just a quarter ago to 14.6 percent. While last quarter’s positive absorption of nearly 235,000 square feet is a promising sign, the submarket is very volatile.

Tenants moved their offices from other submarkets and into River North reducing vacant office space. The recently constructed properties continued to gain occupancy. Littler Mendelson occupied 36,000 square feet at 321 North Clark after moving from 200 North LaSalle in the Central Loop. Intercontinental Exchange also migrated from the Central Loop and moved into 24,000 square feet at 353 North Clark. Older, but renovated, 350 West Mart also saw significant leasing activity. At a later date, Getco will move into 100,000 square feet there when they relocate from 141 West Jackson.

The biggest story in the River North Submarket last quarter was the pending sale of 300 North LaSalle. KBS Realty Advisors agreed to purchase the one-year-old building from Hines Interests L.P. for approximately $655 million, roughly $503 per square foot, a record. It is Chicago’s first example of high demand for trophy buildings in global cities. With nearby 353 North Clark now on the market, further interest will be tested.

For MB Real Estate's Outlook on the River North submarket and the rest of the Chicago Market reference our Submarket Snapshots, our companion piece to the MB Real Estate Chicago Market Overview.

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