The only office tower finishing this year is 300 E. Randolph, an 850,000-square-foot building addition that will be 85% occupied with owner Blue Cross Blue Shield and tenants such as Baker & McKenzie. "There have been some relocations of large tenants into downtown, which has helped us stabilize large blocks of space, but we don't foresee any job growth, and thus little absorption this year," says Matt Carolan, a managing director at Jones Lang LaSalle. Also, companies can't acquire financing to start new construction, he says.

Renewals are the main work being done, he says, though most tenants are not able to pull off a relocation. "Anybody who does a move deal is just doing it because it's too good to be true," Carolan says. Large blocks of renewal space signed in the first quarter include UBS taking 389,000 square feet at its namesake tower at One N. Wacker Dr., AkzoNobel signing a renewal for the 90,000 square feet it occupies at 525 W. Van Buren. One positive note for the Class A properties, according to a JLL Q1 market report, is that eight tenants including Pricewaterhouse Coopers and Citadel are reviewing options for about 1.7 million square feet by 2014.

Metropolitan Chicago' s employment base will lose an additional 100,000 jobs in 2010, before adding an expected 80,000 jobs during 2011 and 2012 as economic growth gains momentum, according to a Transwestern first-quarter report. "Chicago's position as a transportation/distribution hub and business center will help promote economic recovery in the next 24 months, with core industries like professional/business services, trade and transportation adding jobs. However, we anticipate a gradual economic recovery," the report said.