The improvement trend witnessed in the Chicago-area office market over the past three years continued through the end of 2013. That’s according to NAI Hiffman’s Year-End 2013 Market Peek, a sneak peek at the market statistics for the Chicago metropolitan office real estate market.
Over the course of the year, more than 960,000 square feet of vacant space was absorbed in the suburban office market, with about 458,000 square feet absorbed during the fourth quarter alone. This activity dropped the suburban vacancy rate by 25 basis points to 19.9 percent during the fourth quarter, the first time this rate has been below 20 percent in five years, according to NAI Hiffman.
In the downtown office market, more than 1.1 million square feet of vacant space was absorbed during 2013, with the fourth quarter seeing a tally of about 242,000 square feet absorbed through continued leasing activity. NAI Hiffman notes that the downtown vacancy rate dipped 23 basis points during the final quarter of the year to 12.5 percent, a rate nearly a full percentage point below the rate recorded a year ago.
Looking toward 2014, NAI Hiffman predicts the outlook for Chicago’s office market continues to look positive, as more than 2 million square feet was absorbed during 2013 and leasing activity continues to pick up.
To view NAI Hiffman’s market peak, click on the image above.
For a complete list of year-end office market statistics, click here.
