We are pleased to present our second quarter 2013 Office and
Industrial Market Reviews, which have been completely redesigned and now
include additional detailed content to make them more in-depth and easier to
- A new section dedicated to new construction activity with maps and a list of ongoing projects
- Expanded market overview sections to better analyze trends and market statistics
- A refreshed look with full-color graphics
Vacancy Drops Downtown, Unchanged in the Suburban Market
Suburban Office Market Vacancy Rate: 20.29%
For the first time in nearly two years, net absorption turned slightly negative in the suburban office market during the second quarter, totaling negative 10,148 SF. While the suburban market absorbed more space than the downtown market for the past year, that trend ended during the second quarter, as demand for space picked up downtown and sizable new vacancies were added to the market in the suburbs.
Downtown Office Market Vacancy Rate: 13.00%
The recovery of the downtown office market continued unabated during the second quarter, as 398,058 SF of vacant space was absorbed through new leases and tenants expanding. This activity pushed the overall vacancy rate down 29 basis points to 13.0%, the lowest level witnessed in the downtown office market since the end of 2008, and a rate 104 basis points better than a year ago.
Download the complete office review
Conditions Improve in Industrial Market for 12th Quarter in a Row
Industrial Market Vacancy Rate: 8.7%
Demand for industrial space has been positive for the past twelve quarters, resulting in the absorption of more than 40 million SF of vacant space. During the second quarter, the overall industrial vacancy rate decreased by 30 basis points to 8.7%, the lowest rate witnessed since 2007, when the economy was booming. More than 2.6 million SF of vacant space was absorbed through new leases, lease expansions and user sales during the second quarter, bringing the tally for the first half of the year to just over 7.1 million SF absorbed.
The I-55 Corridor witnessed the most activity for the quarter, absorbing more than 1.1 million SF alone due to several large new leases being signed, the largest of which involved Peacock Engineering leasing 532,560 SF in Romeoville.
Download the complete industrial review