Despite sluggish job growth, the CBD experienced over 456,000 square feet of positive absorption during the quarter. Demand was bolstered by tenants taking advantage of attractive lease terms earlier in the year and are now occupying new space. However, previous employment losses have yet to fully materialize and may still work their way through the market.
Suburban Chicago experienced slight positive absorption in Class A buildings with relatively no net change in Class B and C. Vacancy rates continue to hover near historically high levels. The market continues to lack the demand drivers that the CBD has benefitted from and a glut of direct and sublease space is expected to remain.
In addition to the Chicago Market Overview, please reference our in-depth 4th Quarter 2011 Submarket Snapshots, which include highlights and analysis of each of the Chicago submarkets that MB Real Estate tracks.
