CBD Office Vacancy Increases as Pandemic Caution continues into Second Quarter
In the second quarter of 2020, office users in Chicago and across the nation take into account the COVID-19 pandemic as their foremost concern in making decisions regarding their use of office space.
Chicago’s CBD vacancy rate increased dramatically by 100 basis points to 13.9 percent in the second quarter of 2020. This is the third consecutive quarter of increases in CBD overall vacancy and the highest quarter to quarter jump since 2009. Current overall vacancy now stands as the highest vacancy in over 8 years.
Class A vacancy increased by 80 basis points from last quarter to 12.2 percent. Class A vacancy is now the highest it has been in the past two years when a flood of new vacant development had hit the market. Delivery of several developments currently under construction is expected to continue to edge vacancy upward in the Class A asset class into 2021.