CBD Looks Solid Again, and Suburbs Hold Their Own

Facebook has expanded its Chicago presence by taking about 260,000 square feet at 151 N. Franklin, the latest class A development in Chicago’s CBD.

CHICAGO—Tech companies and co-working firms continue to fuel the downtown market as office activity remained high in the third quarter. The metro area’s vacancy rate dropped to 16.6%, a decline of 30 bps quarter-over-quarter and 120 bps year-over-year, according to a new report from NKF. Rental rates also grew, increasing to $29.75 per square foot from $29.12 in the second quarter. Downtown vacancy fell half a percentage point to 13.0%.

Facebook signed the largest lease of the quarter, agreeing to take more than 260,000 square feet at 151 N. Franklin. This brings the new trophy building to 91.8% leased. And WeWork also made headlines by signing leases to open two more locations. The co-working giant will open a 100,000-square-foot office at 515 N. State, which has a large vacant block, and take nearly 70,000 square feet of space at 330 N. Wabash.