CHICAGO—A few signs of life have been seen in the suburbanoffice market, including significant positive absorption in thefirst quarter, and increased investor interest in some submarkets, but the stubbornly highvacancy rate outside Chicago may persist for a very long time,according to the latest market report issued byMBRE.
The hopeful signs include 198,871-square-feet of positiveabsorption in the first quarter, the company's report notes.However, since the start of the recession, the suburban officemarket has experienced over six million square-feet of negativeabsorption, and with major corporate tenants continuing to migratedowntown, even more “potential headline losses could derail thisprogress in the coming quarters.”
That migration has been a flood of well-known names includingheadline-grabbing tech companies like Gogo Inc.,which recently decided to leave its 160,000-square-foot suburbanItasca headquarters for 232,000-square-feet at 111 N. Canal St.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
