MB Real Estate has released our 3rd Quarter 2011 Chicago Market Overview, a quarterly report that tracks trends, analyzes data, and provides you with our forecast for the Chicago CBD and Suburban office markets.
Vacancy continued to decline in the CBD, albeit modestly. Business confidence, which has propelled CBD office demand ahead of the employment market, has been shaken by negative economic news and fears of another downturn. Without confidence in future growth, tenants are likely to be more conservative in their office leasing. On the other hand, companies like Motorola Mobility, Sara Lee, and Google are searching for office space and will represent new demand. In Suburban Chicago, the picture is still bleak with a further decrease in occupancy. With no consistent drivers of growth and a preference for companies to be in the CBD, Suburban Chicago will have difficulty rebounding.
In addition to the Chicago Market Overview, reference our in-depth 3rd Quarter 2011 Submarket Snapshots, which include highlights and analysis of each of the Chicago submarkets that MB Real Estate tracks.