Chicago Office Sales Slow in 2017

The largest deal to close in the past six months was China-based HNA’s purchase of 181 W. Madison for $359 million.

CHICAGO—After a couple of record-breaking years, the Chicago office sales market slowed down considerably in the first half of 2017. With just 17 major sales closing, overall dollar volume dropped to its lowest point in five years, according to a joint study between Commercial Café and Yardi Matrix. “Ongoing company relocations and downsizing efforts are likely to push the vacancy rate higher and companies will have a rough time selling underused assets.”

Sales volume dropped from $2.9 billion in the second half of 2016 to $1 billion, and the number of deals declined by more than half. Less than 5.5 million square feet of office space traded in the first half of 2017, compared to the 8.8 million square feet that sold in the first half of 2016.