MB Real Estate has released the June 2012 Marketbeat research report.
Over the past three months, the MB Real Estate (MBRE) Index experienced 128,000 sq ft of positive absorption. Demand for Class A space increased in the CBD’s newest buildings for the first time since 2011. This led the MBRE Index direct vacancy rate to fall to 10.2 percent. While direct vacancy is slightly greater than the 9.9 percent level seen a year ago, the market for premier, Class A space in the CBD remains tight.
The overall CBD, however, experienced negative demand in the first quarter with direct vacancy reaching 15.8 percent. This was largely due to large occupancy losses in Class C buildings. Thus, the spread in vacancy rates between the MBRE Index and overall CBD has risen to 5.6 percent, the second largest disparity in tracked history. In the past, the MBRE Index has been a leading indicator for performance in the overall market, and therefore, we expect direct vacancy in the overall CBD to decline within the next two quarters.
Read GlobeSt.com Exclusive– “Tight Core Vacancy Proves Chicago Class A Desire,” featuring MBRE Research data and Andy Davidson, EVP Corporate Services.