Just in time for summer, we’re here with an office space discount you have to see to believe. In the last five years, the gap between top-tier downtown and suburban space has dramatically widened, creating interesting opportunities for occupiers looking for luxury.
Since 2012, Class A rents have increased just 3.2 percent in the suburbs, compared with more than 21.5 percent downtown. For even the smallest tenants, this represents six-figure savings that could be reallocated to other business priorities, from talent retention to technology upgrades.
“With suburban Class A, office tenants see lower cost pressure on their real estate without sacrificing quality,” said JLL Research Analyst Lauren Tilmont. “This flexibility can go a long way in helping them stay competitive in today’s knowledge economy.”
Prospective suburban Class A tenants can also realize the benefit of landlords’ continuous reinvestment in their buildings, creating market-leading amenity spaces from lounges to fitness centers to enhance employee experience.
Even the most desirable of suburban submarkets, those in close proximity to downtown or with public transit access, have seen a relatively modest increase in Class A rents in comparison with downtown. Class A rental rates in the North Cook and O’Hare submarkets have grown approximately 9 percent and 13 percent, respectively, leaving those submarkets well-positioned to attract major tenants like Caterpillar and Paylocity.