Published by: NAI Hiffman Market Reviews
Suburban Office Market Vacancy Rate: 19.67%
Net absorption in the suburban office market outpaced the downtown office market during the first quarter of the year, as it has done for six of the past eight quarters. Between January and March, 272,607 SF of vacant space was absorbed through continued leasing activity and user sales, pushing the vacancy rate down 21 basis points from last quarter to 19.67%, the lowest vacancy rate recorded in the suburban office market in more than five years.
Downtown Office Market Vacancy Rate: 12.49%
Absorption turned negative in the downtown office market for the first period in more than three-and-a-half years, as new vacancies outweighed the effect of continued leasing activity and existing office buildings that were converted to other uses. Over the course of the first quarter, the downtown vacancy rate remained essentially flat at 12.49%. The West Loop was the only downtown submarket to see solid activity during the first quarter, as 201,836 SF of vacant space was absorbed, pushing the West Loop vacancy rate down 44 basis points to 10.56%