CHICAGO OFFICE MARKET
| Total Inventory (SF) |
129,947,844 |
|
| Vacancy Rate (%) |
Total |
16.6% |
| |
Direct |
14.7% |
| |
Sublet |
1.9% |
| Average Asking |
Total |
$28.91 |
| Rental Rate (Price/SF) |
Direct |
$29.59 |
| |
Sublet |
$20.96 |
| Net Absorption (SF) |
2Q10 |
435,915 |
| |
1Q10 |
-485,692 |
| |
4Q09 |
238,468 |
| Under Construction (SF) |
|
0 |
Conditions in the Chicago CBD office market improved during the second quarter of 2010. The vacancy rate decreased to 16.6% from 16.9% in the first quarter and remained above the 14.9% rate reported one year ago. The vacancy rate for this market has been above 11% since 2001. The average asking rent held steady at $28.91/sf in the second quarter and remained below the $30.11/sf rent reported one year ago. Net absorption in the second quarter was positive as 435,915 square feet were removed from the market. Year to date, net absorption remained negative as nearly 50,000 square feet were returned to the market.
The Bureau of Labor Statistics reported that the unemployment rate for the Chicago metropolitan area was 10.4% in May 2010, compared to 10.3% in May 2009. The Bureau of Labor Statistics reported that total nonfarm employment in the Chicago metropolitan area fell by 1.7% in the 12 months ending in May, indicating a loss of 61,500 jobs. The BLS also reported that the Consumer Price Index for the area had grown 1.5% for the 12 months ending in May.
CHICAGO INDUSTRIAL market
| Total Inventory (SF) |
530,677,542 |
|
| Vacancy Rate (%) |
Total |
16.6% |
| |
Direct |
15.6% |
| |
Sublet |
1.0% |
| Average Asking |
Total |
$4.19 |
| Rental Rate (Price/SF) |
Direct |
$4.23 |
| |
Sublet |
$3.47 |
| Net Absorption (SF) |
2Q10 |
-1,205,460 |
| |
1Q10 |
-380,092 |
| |
4Q09 |
-2,989,032 |
| Under Construction (SF) |
|
242,078 |
Conditions in the Chicago industrial market continued to weaken in the second quarter of 2010. For the seventh consecutive quarter, the industrial market posted negative net absorption as 1.2 million square feet were returned to the market, bringing the year-to-date total to nearly 1.6 million square feet of negative net absorption. The vacancy rate continued to climb to 16.6%, its highest level on record since 1996. The average asking rent for industrial space in Chicago declined to $4.19/sf in the second quarter, down from $4.27/sf in the first quarter of 2009 and 17.7% below the historical high of $5.09/sf reported during the fourth quarter of 2004.