Office leasing velocity slows in Chicago CBD, but rents continue gradual climb

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Office leasing velocity in downtown Chicago slowed in the second quarter of 2012, according to Jones Lang LaSalle’s newly released Q2-2012 Chicago Office Report. But while the overall vacancy rate downtown actually climbed a nominal 10 basis points from 14.0% in Q1 to 14.1% at the end of Q2 as a result, the protracted trend of of tightening vacancy figures to continue throughout the rest of the year, the report suggests, with big tenants like Google/Motorola Mobility, Aon Corp. and others expected to sign big leases soon.

As a result, rental rates continued to rise modestly in Q2 and have now climbed more than 60 cents/SF since Q2-2011  to $31.44 today.

The report finds reason to believe that a leverage shift (from tenant-favorable to landlord-favorable) could be on the horizon. Will tenants who’ve sat on the sidelines until now be motivated to act?

Click here to read the full report

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