The Value of Class
As office workers start to return to their routines, we are seeing more clearly the repercussions of the pandemic and its effect on each submarket. Two separate patterns are emerging in the office asset classes as we transition away from defining the market by the pandemic: Class A buildings, particularly in Fulton Market and the West Loop, have increased activity and interest, while Class B assets, specifically in the Central Loop, continue to feel the full weight of the downturn with lower rates and higher vacancy. Further, the draw of new class A constructions and recently renovated, amenity rich assets in other submarkets puts existing Class B buildings at a disadvantage. It will be some time before Class B assets trend in positive absorption overall.
