"Leasing activity is flat and even though fourth quarter is historically a very strong period, we don't expect much chance of improvement until the job market starts to come back and companies begin loosening the restraints on capital spending," says CB Richard Ellis managing director Jack Durburg in a statement.
As a result, rents at class-A buildings are down as much as 15% from one year ago, Durburg reports, while owners of class-B and class-C properties have seen rates drop by as much as 25%. In addition, free rent incentives and tenant improvement allowances continue to grow.
The north Cook and Lake County market posted the lowest third-quarter vacancy rate at 14.3% while the O'Hare submarket had the highest at 19.5%. Filling in, the northwest suburbs saw a 16.5% vacancy rate while I-88 Corridor vacancy stands at 17.3%.
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