Writing with an update on the Chicagoland office market.
6.8 million square feet of new office is under construction, 90% of it in downtown and 75% of it above the 4th floor. As long as tenants fear crowding in public transit and elevators, it will be difficult to lease this new office space.
Downtown Class A offices command a 75% rent premium over suburban Class A offices. But new construction, coupled with softening demand, will depress downtown office rents and sale prices in the short term.
If the pandemic significantly disrupts three decades of re-urbanization, downtown and suburban office rents will converge for extended period.
Stay healthy and safe.
PS – Let me know if my commercial real estate brokerage services may benefit you or anyone you know.
Golden Group Real Estate
Call us at our office at(630) 805-2463, or email us at email@example.com for information on the latest available properties.
November 20, 2020
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