West Loop Continues to Lead CBD Market

Chicago’s West Loop had around 1.2 million square feet of positive absorption this year, way out in front of the other CBD submarkets.

CHICAGO—Chicago’s CBD office market remained strong in the second quarter of 2017 as tenants absorbed space at a robust tempo. Direct vacancy did tick up to 11.6%, an increase of about 30 bps since the start of the year, according to a new market report from MBRE, but that was largely due to the opening of the CBD’s new office towers in the West Loop at 444 W. Lake and 150 N. Riverside.

And leasing continues to be robust at these gleaming trophy spaces, the company found. Their tenants helped create 393,302 square feet of overall positive absorption in the second quarter, despite the shadow space left behind. The CBD currently has had more than 3.5 million square feet of sublease space available, somewhat less than the 3.8 million square feet at this time last year.