Despite rising taxes and operating expenses that have impacted most downtown Chicago office buildings, overall downtown average gross asking rent fell 1.3% in 2023’s first quarter below Q4 of 2022, to $42.63 per square foot, Savills reported Class A asking rents similarly declined 1.3%, to $48.98 per square foot.
Downtown should be named Downturn. Going, lower and lower for years to come.
The Chitty belongs to criminals, not businesses. The cops think so at least.
Move to Punta Gorda if you want to be safe, just like the cops do.
debtsor
3 years ago
The rents will never be *soft* enough to offset taxes and union operating costs. My guess is that in the upcoming years, the companies that must remain in the loop – big consulting firms, white shoe law firms, architecture firms, etc, will consolidate in one particular area, and basically ignore the rest of downtown. Right now it’s looking like west of the river is desirable part of downtown with newer buildings, major tenants with longer term leases, and access to amenities. Those companies stuck in long term leases elsewhere will either just suck it up or break leases early to… Read more »
They keep talking about that but the cost of conversion is prohibitively high because of plumbing stacks, electrical, HVAC and window issues. The buildings are more likely to be abandoned before they are repurposed for residential. Now if they become residential in the sense of SROs with shared kitchen/restroom situtions, it would require a total writing of the zoning code to permit tenement housing, which has mostly been prohibited for a century.
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Downtown should be named Downturn. Going, lower and lower for years to come.
The Chitty belongs to criminals, not businesses. The cops think so at least.
Move to Punta Gorda if you want to be safe, just like the cops do.
The rents will never be *soft* enough to offset taxes and union operating costs. My guess is that in the upcoming years, the companies that must remain in the loop – big consulting firms, white shoe law firms, architecture firms, etc, will consolidate in one particular area, and basically ignore the rest of downtown. Right now it’s looking like west of the river is desirable part of downtown with newer buildings, major tenants with longer term leases, and access to amenities. Those companies stuck in long term leases elsewhere will either just suck it up or break leases early to… Read more »
It’s the prelude to turning downtown office buildings into public housing.
They keep talking about that but the cost of conversion is prohibitively high because of plumbing stacks, electrical, HVAC and window issues. The buildings are more likely to be abandoned before they are repurposed for residential. Now if they become residential in the sense of SROs with shared kitchen/restroom situtions, it would require a total writing of the zoning code to permit tenement housing, which has mostly been prohibited for a century.