Chicago’s Healthy Market Has Uncertain Future
Office market expected to soften in face of pandemic social changes.
Chicago’s CBD vacancy rate increased by 60 basis points to 12.9 percent in the first quarter of 2020. This is the second consecutive quarter of increases in CBD vacancy. Current overall vacancy now stands as the highest vacancy in 5 years.
Class A vacancy increased by 80 basis points from last quarter to 11.4 percent. Class A vacancy increased despite high demand in this asset class. This is in part due to several new developments adding to the inventory this quarter with vacant space available.