Author: Ryan Emerick
While much of the local spotlight has focused on the migration of large firms from the suburbs to the urban core, downtown is not the only thriving submarket. Strong tenant demand has also sparked a dwindling supply of office space in the O’Hare submarket. Vacancy rates near O’Hare have dropped from a high of 26.9 percent to 16.4 percent and are now at their lowest levels since 2000.
In the past eight months alone, O’Hare’s available large block spaces—spaces with 50,000 square feet or more—have dropped 23.7 percent. Additionally, of the nine current large blocks on the market, only six are readily available for lease today. Tenant demand remains high, as large firms like U.S. Cellular and True Value have renewed their leases, and new market entrants like Combined Insurance and First Midwest Bancorp are making moves to O’Hare’s Triangle Plaza.
“Historically, O’Hare has been one of the busiest airports in the country, and in light of the recent push for airport development nationwide, O’Hare will undertake major improvements to maintain its status as a leading global hub,” said JLL Chicago Senior Research Analyst Jack Trager. “That makes the submarket especially attractive as a regional headquarters location for companies such as major finance and communications firms.”
As the market continues to tighten and major development plans for the airport unfold, tenants around O’Hare can expect competition to increase and rents to rise.
For additional information, please contact:
Jack Trager, Senior Research Analyst