Leasing Activity Stays Strong as Trophy Properties Open

The vision for 130 N. Franklin, which will most likely be one of the next trophy office towers to break ground.

CHICAGO—The metro area’s office market saw its vacancy rate blip up in the first quarter, according to a new report by Newmark Grubb Knight Frank, but that was largely due to opening of the CBD’s new office towers. And overall, these new trophy spaces have attracted a healthy number of tenants, a run of good news that does not seem likely to end any time soon.

“Our market tracking reports show tenants that need a total of about 13 million square feet are looking for space,” Bob Chodos, vice chairman of NGKF, tells GlobeSt.com. “That’s almost as deep a market as I’ve seen in my career.” And it may help push other developers to add more trophy space to the CBD inventory.