Cautious Optimism in the Face of Negativity
Although there is some optimism in the market with a slight uptick in activity compared to last quarter, a return to market “health” is a long way off. The Chicago office market is expected to remain soft well into 2021.
- Activity (along with optimism) is up in 1Q21 although much of the movement in the market is renewals and contractions of office space
- Vacancy is highest in a 15-year history and may move higher over the next few quarters as new deliveries add significant vacant space to the market with diminished demand
- Landlords are highly motivated in this soft market to offer creative lease deal incentives for savvy tenants willing to take advantage of the soft market now