CHICAGO—The downtown office market continues to thrive, and thetendency of many CBD tenants to expand existing offices has been akey factor in the revival, according to officials fromColliers.

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WeaverBoos, a full-service engineering consulting firmheadquartered at 35 E. Wacker Dr., for example, just agreed to a10,842-square-foot lease extension and expansion of its12th floor space. Located in Chicago's East Loopsubmarket, 35 E. Wacker Drive is a 560,000-square-foot, 40-storyclass B office building originally constructed in 1926.

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And Cabrera Capital, an investment banking and brokerageservice headquartered at 10 S. LaSalle St. just signed a10,949-square-foot lease extension and expansion for its10th floor space. Located in the Central Loop, 10 S.LaSalle Street is a 733,000-square-foot class B office propertyconstructed in 1986.

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Thomas I. Volini, executive vice president; andSven Sykes, executive vice president; both withColliers' Chicago-based office advisory group, represented WeaverBoos and Cabrera Capital in these transactions. DUSManagement represented landlord TDC CanadaCorp. and Wacker GP, Inc. in thenegotiations with Weaver Boos, while JF McKinney andAssociates represented Madison LaSalle Partners,LLC, the owner of 10 S. LaSalle.

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“Corporate expansions in the CBD have been on the rise in 2014,”says Volini. “This is a key indicator of the ongoing recovery inthe CBD. Financial services and consulting companies, and thelandlords of these companies, are benefiting from the growth in theeconomy.”

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The vacancy rates in the East Loop and Central Loop now stand at16.5% and 13.9%, respectively, according to Colliers' most recentdowntown market report.

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“With positive year-to-date net absorption, fundamentalstightening across the majority of submarkets and the economycontinuing to show signs of a sustainable recovery,” the Colliersreport says, “the CBD market appears well-positioned to carry onthe positive momentum experienced during the first half of theyear.”

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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.