The first quarter saw 1.6 million sf of net absorption of city and suburban office space here, according to Delta Associates, Transwestern Commercial Service's research arm. The overall vacancy rate also is nearly a full percentage point better than it was a year ago, Kincaid notes. "We think the vacancy rate will continue to decline," he adds.
While the suburban vacancy rate fell to 15.3%, Equity Office Properties' first-quarter acquisitions were made up largely of the 262,991-sf Pointe O'Hare property in Rosemont. The largest US office REIT spent $57.7 million for the property, with 81.9% occupancy, while the O'Hare submarket remains the softest with a 22% vacancy rate, including sublease space. The deal was at a 7.3% capitalization rate, based on current yearly rent, according to company financial disclosures.
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