By Dan McCarthy and Henry Lee
Jones Lang LaSalle
As was detailed in this recent article by Crain’s Chicago Business, the North submarket had a mixed fourth quarter with some positive and negative gains.
On the positive side, the largest lease transaction of the year was signed when our client Zebra Technologies agreed to a 230,000-SF lease at 3 Overlook Point in Lincolnshire. The company will be consolidating its offices from two other buildings in the submarket.
On the flip side, the start of Capital One vacating its 500,000-square-foot building in Mettawa had a negative effect. While the credit card giant will not be abandoning the suburbs all together, the vacancy will leave another large gap in a submarket that is already plagued by an abundance of large vacancies. With half of the building beginning to empty out this quarter, the other half will be vacated in the second quarter of 2014. Although this impacted total vacancy, direct vacancy decreased in both counties falling 40 basis points to 13.1 percent in Cook County and dropping a full percentage point to 18.7 percent in Lake County.
Looking ahead, we predict that the north-suburban market will continue to tighten in 2014, but that the improvement will be gradual, with tenants retaining their upper hand over landlords for the duration of the year.
Click here to dowload JLL’s complete Q42013 Suburban Office Market Insight report.
Dan McCarthy and Henry Lee advise a variety of large-space users in the North submarket, most recently representing Zebra Technologies in its lease in Lincolnshire.