CHICAGO—According to the new MBRE Index,landlords of the 30 newest class A office buildings in downtownChicago saw, partly due to significant leases signed by tech firms,the direct vacancy rates for their properties decline over the lastquarter from 11.2% to 10.3%. The decline was a recovery from theprevious quarter, when the same buildings had an increase invacancy, breaking what had become a pattern of steady improvementin the market.
“That was an unusual blip,” Andrew J. Davidson,executive vice president and managing director of corporateservices for MBRE, tells GlobeSt.com. Heattributed the increase to approximately 300,000-square-feet ofspace formerly occupied by the American MedicalAssociation at 515 N. State St. returning to the market.But this new decline “shows that class A space is going strong andit also reflects what's happening in the larger economy,” hesays.
Since March, the direct vacancy rate has declined in 13 of the30 indexed buildings, all of which were built between 1989 and 2009and range from 372,000-square-feet to 1,845,460-square-feet.
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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.
