Chicago Office vacancy rates keep climbing

Crain's Chicago Business reports on Chicago's non-comback:

Office vacancy rates in downtown Chicago hit a 10-year high during the third quarter, according to a report released today by MB Real Estate Inc.

Excluding subleased space, downtown office buildings were, on average, 16.8% vacant, the highest percentage since at least 1995, and up from 16.6% in the second quarter.


Class B properties had the highest vacancy rate, at 18.8%, while Class A properties fared better, at 15.8%.

The report cited three factors for the increases: Increased inventory due to new construction; expiring vacant subleases; and a lack of major corporate headquarters entering the market. Those conditions have given significant leverage to tenants looking to renegotiate their leases.

We doubt high gas prices will cause corporations to move to Chicago.