CHICAGO—The suburban Chicago office market has long sufferedfrom a high vacancy rate, and in the first quarter, that numberclimbed to 21.2%, up from 20.3% at the end of 2013, largely due tothe decisions of several corporations to move downtown and thedecisions of others to shrink their footprints, according toColliers, which recently published its overview ofthe first quarter.

“While there continues to be improvement in certain pockets ofthe market, tenants in the suburbs are still actingconservatively,” the researchers note. Too few are ready to makethe long-term commitments needed to create a healthy market, andmany suburban landlords are still offering aggressive incentivepackages. “Tenants are taking advantage of current concessions andfinding that they can move into higher-end, class A space withoutsignificantly increasing their total operating cost. However, theseprominent class A options are beginning to diminish.”

Ariel Bentata, the managing partner ofBeacon Investment Properties, LLC, which recentlycompleted the acquisition of a 12-story, class A officetower in north suburban Buffalo Grove, tellsGlobeSt.com that “tenants want efficient floor plates, walkableamenities and good parking ratios. If you can provide that, sometenants are taking advantage of today's low rates and doing earlyrenewals and locking in for a long term.” Furthermore, “with thegeneral economy expanding steadily and virtually no newconstruction, conditions should continue to improve for landlords,”especially if they own well located class A properties with thedesired features.