Q2 ’16 Chicago Office Space Market Summary: Part 2

In Q2 ’16 Chicago Office Space Market Summary: Part 1 we covered the positive absorption rate and decreasing vacancy rates in the Chicago office space market.  This second article installment reviews Q2 ’16 large office lease signings, office sales activity, and new office construction in the Chicagoland office market.

Chicago Office Lease Signings in Q2 ’16

While we saw some tenants vacating space, such as Navistar and K&L gates, we saw Verizon Communications relocate into a larger space, along with new tenants HSBC and The Kraft Heinz Company moving into Chicago space. Large lease signings and great news for Chicago included a lease renewal for 642,545-square-feet by Leo Burnett Worldwide, Inc., a new 486,400-square-foot signing by McDonald’s Corporation and lease of 309,559-square-feet by Paylocity Corporation.

Chicago Office Sales Activity in Q2 ’16

Sales for buildings 15,000 square feet or larger fell at the beginning of 2016 in terms of dollars with 42 closed transactions for a total of 5,800,677 square feet at an average per square foot price of $136.98. This is down significantly from Q4 2015 with 54 sales of 11,341,021 square feet at an average price of $210.29.

Total office building sales trended down as well with 42 sales transactions at the same per square foot price of $136.98. This is significantly less than what we saw in the same three-month period in 2015 where the price per square foot averaged $212.48.

Chicago Office Construction in Q2 ’16

Three new buildings with 128,579 square feet completed in the second quarter. This compares negatively to the six buildings completed in Q1 2016 which created 517,997 new square feet of space but is only slightly lower in available square feet than the completions in Q3 and Q4 2015, even though those quarters saw the completion of a total of 14 new buildings together.

Another 7,824,262 square feet are currently under construction with two of these projects already pre-leased at 73 and 80 percent. A 450,000 square foot project completed in Q1 remains 0% occupied but a second project finished in Q2 is 85% occupied.

Hire a Local Commercial Real Estate Broker that Knows the Chicago Office Market

At Golden Group Real Estate, we specialize in tenant representation real estate services for office space users in the Chicago area, helping local business owners find office space and negotiate lease and purchase agreements. We never represent landlords, so we are prepared to negotiate aggressively on behalf of our tenant clients.

For more on Golden Group Real Estate, read about our real estate services.  Let us know if we can help you find office space for rent or buildings for sale.  Call us at (630) 805-2463, email us at troy@goldengroupcre.com.


June 19, 2019

Schedule an Appointment
Free Market Survey
Request a Survey on Office Buildings & Space Available

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form :(

Real Estate News & Talk
~the RENT Blog~

The RENT blog gives you the resources and tools you need to make the best decisions regarding your real estate needs.  We cover a broad range of subjects regarding office space, tenant needs and what to look for when investing in property.

Check out these great listings!

Schedule a Consultation with our Real Estate Specialists Today

Oak Brook office space, Naperville office space, Downers Grove office space, Lisle office space



To schedule a free consultation at our offices in Lombard call us at (630) 805-2463 or email us at troy@goldengroupcre.com to schedule a time to to talk about your real estate needs.

Our tenant and buyer representation real estate services are 100% free to our clients.  We are active commercial real estate brokers and work with all Oak Brook, Naperville, Downers Grove, Lisle, and Dupage County office buildings.  Golden Group Real Estate will show you both listed and unlisted investment properties.

Our Tenant Advisory Process

Use every resource to make the right business decisions for you AND your company!

Dupage county real estate services, Dupage county tenant representation


Stay informed with all the information you need to know when choosing, or moving your company to a new location.

Dupage county real estate services, Dupage county tenant representation

Real Estate News & Talk

View our collection of articles on a wide variety of topics related to real estate and business needs

Dupage county real estate services, Dupage county tenant representation

Networking Events

Come out to one of our events to meet and develop business relationships to last a lifetime

Dupage county real estate services, Dupage county tenant representation

Reviews & Social Media

We ensure every client gets the property they need, the terms they want, and
what's critical for their business.

5S640 Ridgeview Lane Naperville, IL 60540
Golden Group Real Estate