Across submarkets, Millennials fueled the commercial office market’s robust performance in the second quarter.
As global companies continue to change the complexion of their workforce in favor of digital natives, Millennials are having an increasingly outsized influence on major expansions and headquarters relocations. In 2018 alone, international companies including Rio Tinto, Showpad and iam bank have expanded their Chicago-based North American headquarters. The reason? Illinois is the second-largest producer of computer science graduates in the country.
With Illinois graduates accounting for nearly 10 percent of U.S. computer science degrees last year but only modest tech wage growth locally, Bay Area tech firms and legacy employers alike are seeing Chicago as a necessary outpost, especially for highly technical positions. Most recently, that prompted Walgreens’ to plant its flag at the Old Post Office, establishing a 200,000-square-foot digital hub.
This war for talent has definitely made its way into the development pipeline, with 6.6 million square feet underway. While incremental vacancy increases are likely at this point in the cycle, we’re still seeing rent growth, strong absorption numbers and stable concessions.… Read More