2016 Looks Good for Chicago Office
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Sterling Bay’s vision for Fulton West, one of several office projects that will soon add more than 3 million square feet to the market.
CHICAGO—A combination of overall job growth, economic recovery, and a slow pace of new construction deliveries helped the Chicago office market rebound at the end of 2015, according to a fourth quarter report by Transwestern. “Both 2014 and 2015 saw favorable long-term deals for tenants that could afford to relocate and take advantage of the lower-than-average rental rates and higher-than-average landlord concessions,” the firm found.
And as we look ahead to a new year, Transwestern said that solid fundamentals, including falling unemployment, low interest rates and higher office absorption bode well for commercial property owners. In fact, the firm forecasts that landlords will be able to increase rental rates over the next 12 months. And while interest rates remain relatively low, investors should continue to jump into the Chicago office property market in 2016, setting records for building sales prices and sales volume…
