However, the vacancy rate rises to 21.8% when 4.6 million sf of sublease space is factored into the equation, according to CB Richard Ellis research.
With 1.5 million sf of negative absorption, the suburban office market was the weakest since the commercial real estate bust of the early 1990s, the company reports.
Rental rates for class A space have eroded 10% to 15%, according to CB Richard Ellis research, while class B and class C rates have fallen 15% to 20%.
Among the larger suburban submarkets, the vacancy rate is highest in the O'Hare area at 19.4%, followed by the I-88 Corridor at 17.5 % and northwest suburbs at 17.2%.
While managing director Jack Durburg pins hopes for improvement on job growth, he notes only 197,486 sf of new construction is expected to be delivered in 2003, down from the 1.6 million sf added to the market in 2002.
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