Savills Studley Releases Q1 2017 Market Report Findings for Chicago Suburbs
23 May 2017
Savills Studley, the leading global commercial real estate services firm specializing in tenant representation, has released its Q1 2017 Chicago Suburbs edition of the Savills Studley Office Market Report.
The quarterly report is an in-depth compilation of office leasing statistics, major transactions, submarket comparisons, employment results and investment and development trends specific to the Chicago suburbs region.
Highlights from the Q1 2017 Chicago Suburbs Office Market Report include:
- Despite 3 transactions each over 135,000 square feet, Q1 2017 leasing activity in the suburban Chicago region reached barley 1 msf for the second straight quarter—nearly 40% below the average pace since 1998.
- Suburban Chicago still offers most companies a variety of office options with an overall availability rate 6.5% higher and average asking rent $10.09 lower than the US Index. Overall and Class A average asking rents remained relatively stable from Q4 2016 to Q1 2017, each down 0.3% and each submarket fluctuating less than 1.2%. Overall and Class A availability rates grew 0.3% and 0.5% respectively.
- With higher average Class A asking rents and significant demand, tenants face a significantly tighter market in the O’Hare area compared to the rest of the region. Attracted to the submarket’s close proximity to major transportation and more modern office stock, O’Hare was the only suburban submarket to exceed its long-term leasing average in Q1 2017. O’Hare’s Class A availability rate has decreased by 370 basis points year-on-year to 15.3%--8.6% below the suburban total and 2.1 percent below the US Index.
- Following the entrance of 140,000 square feet of space to the market from Hospira’s Lake Forest facility and 80,000 square feet now available at Markel’s Deerfield office, the North Corridor’s Class A availability rate increased 3% to start 2017--the largest quarter-to-quarter change in the region.
The 2017 Q1 Savills Studley Chicago Suburbs Office Market Report as well as a national report and reports for each of the 29 major U.S. markets, including Chicago CBD, can be found at www.Savills-Studley.com.
