According to a recent report by Avison Young, 96% of tenants in Chicago’s central business district either maintained or upgraded their building classes. The study also revealed that over the past six quarters, more than 20% of tenants occupying over 10,000 square feet moved to higher-quality buildings. Additionally, 74% of tenants renewed their leases and stayed in the same class of building.
Damla Gerhart, Principal and Regional Managing Director for Avison Young’s Central Region stated that the Chicago CBD office market continues to show a divide between high-quality buildings performing well and lower-class properties struggling. This trend is further highlighted by employers’ increasing focus on providing highly amenitized properties for their employees.
The report also noted a lack of activity in capital markets due to unfavorable economic conditions and investor sentiment constraints.
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