(To read more on the net lease market, click here.)

CHICAGO-With the exception of a single West Loop building, the smallest asset in its 2.4-million-sf local portfolio, Trizec Properties Inc. is benefiting from an improving market in its hometown. Vacancy at the 372,000-sf 550 W. Washington St. is 29.9%, but company officials have known for more than a year about lease expirations, and are in talks that could quickly rachet up occupancy.

Occupancy at Trizec Properties’ other three properties—2 N. LaSalle St., 10 S. Riverside Plaza and 120 S. Riverside Plaza—averages 88.6%. Those numbers are better than the overall Central Loop and West Loop submarkets. Even with 111,455 sf of vacancy at 550 W. Washington St., occupancy in the Chicago portfolio stood at 85.8% at the end of the first quarter. Chief operating officer William Tresham considers the Riverside Plaza buildings and 2 N. LaSalle St. stabilized, and is among those who see improving market conditions Downtown.

“Chicago has been a very good story,” Tresham says during his company’s earnings conference call Thursday. “It’s a tough market. It’s an expensive market to lease in.”

Three of the properties are in the West Loop. “In the West Loop, things are feeling better and better,” Tresham says. He adds talks with potential 550 W. Washington St. tenants are with prospects looking for a large block of space as well as smaller tenants.

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