Activity Increases as Market Remains in the Red
Because the COVID-19 pandemic is health-related, as opposed to a purely financial related crisis, recovery has been slower than expected as business leaders remain hesitant to resume immediate and aggressive activity – especially when compared to previous historical downturns. However, Chicago office users are now beginning to signal a desire for a significant return to physical occupation of office space.
- Chicago CBD vacancy continues to break record highs with 17.0% total CBD vacancy – the highest ever in Chicago recorded history. The market is expected to continue vacancy increases for the remainder of 2021 as rebound may be slow coming.
- Based on local announcements, some business leaders are expected to require a fair number of their office using workers to return to work full-time before the end of this year. A real reset view of the market is not expected until full physical worker occupation occurs.
- The market is primed for tenants as landlords remain highly motivated to offer creative lease deal incentives in this prolonged soft market.