- Tom Silva
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Office Rental Rates Falling as Demand Slides: Part 2
According to a Grubb & Ellis report on the Chicago office market during the third quarter of 2008, vacancy rates increased slightly to 17.1 percent, versus the 16.9 percent reported during the second quarter. Downtown Chicago reported a loss of 200,000 SF of occupied space during the third quarter, while the suburban office market posted positive absorption as several companies moved into new space.
The biggest concern is that Chicago has a preponderance of business and professional services and financial-services firms – the biggest office users. Currently, we have 1.3 million square feet leased to firms directly connected to the meltdown. We need to attract new sectors by promoting the city’s many world-class features and continuing programs to upgrade our infrastructure.