JPMorgan Chase's acquisition of Bank One is likely to be another blow coming in 2004, Diamond predicts, even though the identity of 10,000 employees who will lose jobs in the merger remain unknown. "Where the cuts will occur is yet to be determined, but with 15,000 Bank One employees here, Chicago is a likely target," Diamond says.

Ironically, Bank One is anchoring the 1.5-million-sf building at 131 S. Dearborn St., which opened last year and is 30% vacant. At the same time, Bank One is undergoing a $100-million renovation of its 70 W. Madison St. facility in a repositioning effort, but Hines Interests is building an 820,000-sf tower across the street at 1 S. Dearborn St.

To the west, two buildings on Wacker Drive will add 2.5 million sf. Although all the buildings have signed significant anchor tenants, Diamond isn't the first to note those leases will come at the expense of other office buildings, including class A assets.

"Whether Downtown leasing programs can maintain momentum depends as much as anything on a net gain in new jobs—-and that's very much in question," Diamond says.