2020 was a tenant's market: office rents declined by 2.7% in downtown Chicago, and by 1.7% in the suburbs. Total available space increased to a record 86 million square feet.
On a brighter note, real estate stocks have surged after news of successful Covid-19 vaccine test results. Investors, landlords, and tenants are now planning beyond the pandemic.
Most tenants will maintain a physical office but will reduce their office footprints to take advantage of the benefits of limited work-from-home.
A 2007 meta-analysis of 46 academic studies reveals that workers see greater autonomy and lower work-life conflict when working up to 2.5 days per week at home.
However, beyond 2.5 days per week, there were more significant harms to relationships with coworkers. Beyond mere productivity, work-from-home poses challenges to innovation, mentoring, recruitment/retention and company culture.
Ultimately, the suburban markets may benefit from an exodus of tenants from the downtown area.
The suburbs feature low-density, low-rise buildings better suited for social-distancing measures, and lower rents compared to downtown.
Also the suburbs feature lower cost housing, which has become even more important as people spend more time working in their homes.
Stay healthy and safe & happy holidays!
PS – One of my buildings is offering very competitive, below market rents in the northwest suburbs. Let me know if you're interested, or if my commercial real estate brokerage services may benefit you.
Golden Group Real Estate
Call us at our office at(630) 805-2463, or email us at firstname.lastname@example.org for information on the latest available properties.
December 24, 2020
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