Chicago’s CBD office market supports users of all sizes, from multi-floor corporate headquarters to small partnerships. In our recent experience, space in the 3,000- to 5,000-square-foot range has become increasingly competitive, particularly in quality buildings and desirable locations.
Chicago’s CBD sublease inventory surged in recent years as hybrid work reshaped office demand. Now, as availability begins to recede from its peak, sublease space is emerging as a compelling option for tenants seeking value and move-in-ready suites.
Insights from Andy Gush and Chicago Build 2024
As top subject matter experts, Bradford Allen leaders are regularly asked to contribute to the industry conversations shaping the future of commercial real estate. Andy Gush, Vice President, Development, recently participated in the “High-Rise Development in the Midwest: Past, Present, Future” panel at Chicago Build 2024. Industry experts, including George Phillips Sorich of NORR, Jason Wilen of Klein & Hoffman, and John Peronto of Thornton Tomasetti, joined him in conversation.
Chicago’s suburban office market is undergoing a period of intense transformation. But are the headlines about its unending struggles justified? Our latest report challenges the prevailing narrative, revealing a market filled with opportunities. Dive deeper to uncover insights that redefine the competitive landscape—insights the headlines have overlooked.
In the wake of the pandemic, firms are reconsidering the efficacy of long-term remote work models. Reports suggest an undeniable tilt toward a larger return-to-office (RTO) strategy backed by compelling metrics — including increased revenue. With Fortune 500 companies leading the charge, the office environment is poised to reclaim its pivotal role in how business is transacted. Our latest post dives into these evolving dynamics to better understand how the shift is affecting the legal sector and how law firms are responding.
While hybrid and remote work are here to stay, the benefits of in-person collaboration are compelling. Both employers and employees increasingly see the value of returning to the office, and tracking these trends reveals important insights, like the relative success of the suburban office markets. Still, for Chicago’s CBD, the long-term fundamentals remain strong and are moving in the right direction.
For corporate headquarters decisions, Chicago ranks well among its competitors, and the reasons companies chose the city prior to the pandemic have remained relatively unchanged. The diverse talent pool, favorable location, extensive transit options and relatively less expensive cost-of-living creates an ideal situation for employers and employees. Even though the pandemic created a structural shift in the office market, companies continue to reaffirm their commitment to city, helping the long-term stability of Chicago’s CBD.
In Chicago’s CBD, new office construction has come to a screeching halt, only a couple years after hitting record highs. And even as the effects of the pandemic dissipate, new development continues slowing. What’s behind this deceleration in supply growth? We identify four primary factors weighing on the office construction market and discuss long-run implications for the CBD.
In our previous Office Pulse, we challenged the conventional view that the suburban Chicago office market was suffering from record-high vacancy rates brought on by the pandemic. In this follow-up, we set out to examine Chicago’s central business district (CBD) office market using a similar methodology to understand how the pandemic affected longer-term occupancy trends downtown. Chicago tenants are at a crossroads, and the data clearly reveal how Covid-19 caused a new disruption in the CBD.
Suburban Chicago’s office vacancy rates may seem historically high, but the headline numbers overlook key details about the marketplace. Large, low-quality properties are having an outsized effect on the averages. Removing these “zombies” from the data shows the market is more competitive than you think.
The pandemic is not over, but with vaccination rates rising and public health mitigations easing, office market activity is picking up. Now may be the right time for landlords and tenants to act.
One year into the pandemic we sat down with four senior brokers to reflect on the suburban and downtown office markets from the landlord and tenant representative perspectives.
The COVID-19 pandemic caused a global recession and is affecting the office market landscape in fundamental ways. In this CRE Office Pulse, we explore the implications for Chicago’s landlords and tenants.
In our debut episode of In Focus, Rhea Stephen and Ronan Remandaban are joined by Amit Hasak, CEO of Transship, to talk cold storage. From refrigerators to shipping cargo containers, cold storage is an integral part of the food supply chain, especially with the global consumption of frozen foods. However, as our speakers discuss, there is a deficit in available cold storage space, both locally and nationally, and not all industrial or warehouse space can be converted to cold storage space. Listen as they talk pros and cons.