It may be the first week of the new year but 2015 market activity still remains relevant. Office in particular has many of us questioning what’s to come this year after several new construction announcements emerged just before the year came to a close.
Leasing activity, space absorption and vacancy rates in 2015 all looked good for Chicago, matching up to their pre-recession levels for the most part.
The report shows that rents have risen conservatively across most of the CBD and even warns tenants to be on the lookout for rent spikes in 2016.
Chicago’s River West (Fulton Market) neighborhood was namely one of the most demanded areas. Occupancy of 1K Fulton and tech office properties nearby drove absorption to the highest levels on record, according to JLL.
It said the River West submarket will be the area to watch in 2016, for continued growth, or for signs of overheating.
Meanwhile, new office developments are thriving. Two towers, 150 N. Riverside and 444 W. Lake, have seen significant pre-leasing demand. JLL research said other developments like 151. N Franklin should be successful as leasing demand remains steady, downtown migrations continue, and competing deliveries remain limited.