Suburban Office Market Vacancy Rate: 19.07%
The suburban office market has now absorbed more vacant space than the downtown office market for seven of the past nine quarters. Net absorption totaled 760,833 SF between April and June in the suburban office market, the greatest quarterly tally in two years. As a result, the vacancy rate improved by 60 basis points during the second quarter to 19.07%, a rate 122 basis points below what was recorded a year ago, and nearly 4.6% below the 23.66% peak rate recorded in 2010.
Downtown Office Market Vacancy Rate: 12.25%
Net absorption was only slightly positive during the second quarter in the downtown office market, despite the overall vacancy rate improving by 24 basis points to 12.25% by the end of June. A total of 7,604 SF was absorbed, as significant leasing activity was offset by new vacancies, the demolition of the 124,125 SF building located at 200-212 N Michigan Ave, and the planned conversion of the 238,921 SF office building at 360 N Michigan Ave into a boutique hotel.
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Craig Hurvitz | Director of Research
630 693 0645
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630 691 0608
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