With high vacancy rates still plaguing the 98 million-square-foot suburban chicago office market, tenants are taking advantage of opportunities to extend or expand their current leases or upgrade facilities at favorable rates, JLL’S Dan McCarthy tells Crain’s Chicago Business:
“Tenants are being opportunistic. If they’re in a Class-B building, they can maybe move to a Class-A building at a similar cost structure. We’re definitely seeing a flight to quality.”
According to Jones Lang LaSalle research, the overall office vacancy rate in the suburbs rose slighly during Q1 to 24.6 percent, up from 24.5 percent at the end of Q4 2011. With the exception of last quarter, the rate has fallen slowly but steadily since peaking at 25.4 percent in Q2 2010. (See chart at left courtesy of Crain’s.)
Click here to read the full Crain’s story about the suburban office market.