Record Amounts of Office Space Available in and Around Chicago

Update on the Chicagoland office market.  

We'll soon start to see the first meaningful decline in direct rents and property values in more than a decade.

While demand has remained relatively flat, total available space rose to a record high of 86 million square feet.

Record Amount of Office Space

With a record amount of space, landlords have found very little pricing power.  As such, office rents stagnated in the third quarter of 2020 and are expected to decline in 2021.

With new construction, more subleases, and lower demand, the average vacancy rate is expected to increase to 13.5% by mid 2021, the highest level since 2013.  Vacancy is expected to remain elevated until 2022.

As rents drop, so will the corresponding property values.  Prices are forecast to fall by 10% in 2021, before returning to pre-pandemic levels in 2022.

Stay healthy and safe!

PS – Let me know if my commercial real estate brokerage or tenant advising services may be a benefit to you or anyone you know.

Troy Golden-President
Golden Group Real Estate

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 our office at(630) 805-2463, or email us at troy@goldengroupcre.com for information on the latest available properties.