Chicago Downtown Office Figures Q2 2022
26 Jul 2022
‒ The Central Business District (CBD) continues to make strides, as it experienced the second-highest positive absorption since Q4 2019 in the second quarter of 2022 as occupiers begin to settle in to the “new normal.”
‒ New deals captured over 55% of leasing activity and straight renewals accounted for another 25% of activity. However, renewal/contractions were 10% - a reminder that although some tenants are expanding, some are giving back significant portions of their existing space as they adjust their office strategies with many employees still fully remote or with flexible work schedules.
‒ The West Loop experienced vastly higher absorption than any other submarket in Q2, seeing 815,843 SF total, with 757,990 SF of that occurring in Class A, thanks to BMO Harris and Chapman & Cutler occupying over 500,000 SF at 320 S Canal. These occupancies helped stabilize vacancy rates after a jump in Q1 due to new deliveries.