DOWNERS GROVE, IL-Health Care Service Corp., which operates the Blue Cross Blue Shield plans in Illinois, Texas, Oklahoma and New Mexico, is another office user in the Chicago suburbs that has taken advantage of the area’s 25% vacancy to restructure. Up in 2013, the company reset its long-term lease for about 177,800 square feet here.

The company takes 80% of the 218,000-square-foot Highland Oaks II building here at 1020 W. 31^st St. The net asking rent at the complex is about $15.75 per square foot. The 320,000-square-foot, two-building complex that includes Highland Oaks I, is now almost fully leased, in contrast to many of the properties along the East-West Corridor. Vacancy along the corridor ranges from 22% to 25%. Mike Sessa with Jones Lang LaSalle says the tenant was able to lower its rate and secure new capital funds from the landlord, TA Associates Realty based in Boston. “There’s a number of users that have been looking how to improve their situation, assisted by aggressive landlords and a lot of availability,” says Sessa, who represented HCSC with Dan Maslauski and Craig McKesson.  Bill Elwood with CB Richard Ellis represented building ownership.

While Downtown Chicago has started to see a slight increase in demand, the suburbs have a lot further to go for any sort of recovery, and won’t see much stabilization this year, Sessa tells GlobeSt.com. “People feel like it’s getting better, and companies are willing to make long-term commitments, but a turnaround is not due anytime soon,” he says. “It’s not like downtown where they’re looking for large blocks, which can even trigger new building development, in part because it takes longer to develop there. In the suburbs, the development cycle is shorter, and there’s just too much vacancy. There won’t be shovels in the suburbs.”