Tenants continue to flock toward the hot West Loop and Near North markets, according to a third quarter analysis recently released by the Chicago office of Studley, but demand in other submarkets in the CBD appears to have stagnated. Class A availability in the Near North sank 0.9% to 14.4% and declined 0.8% to 16.2% in the West Loop area. Overall availability in the CBD has been declining since the fourth quarter of 2010, Studley researchers note, but while the West Loop, East Loop and Near North submarkets have seen the amount of available class A space decline by 2.5-million-square-feet, the amount of similar space in the rest of the downtown, including the Michigan Ave., LaSalle St. and Central Loop submarkets, has increased by 700,000-square-feet...
“A fair amount of the leasing in Downtown Chicago during the last two to three years has been due to companies relocating from the suburbs,” Studley reports. For example, as reported in GlobeSt.com, in August AT&T announced it was moving 500 employees from its offices in Hoffman Estates to 225 W. Randolph St.Off-Loop Markets Stengthening, Studley Finds
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