Downtown office vacancy tops 25% with new supply, weak demand – Crains*

After the second-worst quarter of demand in at least 16 years, the downtown office vacancy rate increased to 25.1% at the end of March. It's the first time the share of available office space downtown has topped 25%, marking a new record high for the seventh straight quarter and for the 12th time in the past 14 quarters. Comment: Note that this is rate is about space under lease, as opposed to actually day-to-day occupancy, which has been hovering around 55%.
Subscribe
Notify of

8 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
Veterano
1 month ago

75% occupancy? Believe an old rule of thumb was that 85% is often referenced by lenders as the breakeven occupancy rate for commercial real estate loans. Plus, seem to recall that Chicago has a modest double digit proportion of local commercial real estate loans coming due in 2024, Bottom line – borrower expense cuts, layoffs, asset price declines, and increased lender loss reservations and write-offs pending. More short-term volatility likely ahead for commercial property owners. The good news is we’re better off than the San Fran (approx. 35%) commercial vacancy rate. Perhaps prudent to ensure FDIC insurance technically covers your… Read more »

Ataraxis
1 month ago

Death spiral. Let the thugs run wild and the death spiral will continue.
Will be nice to see the Illinois prairies come back after the city empties out like Detroit.

Wyatt Earp
1 month ago

Who in their right mind would ever want to
Return to working in that sh..hole, the loop.
Drive to get there is ridiculous, parking anywhere is ridiculously costly, eating
There with prices and taxes ridiculous,
Chances of car jacking and or mugging
Good, empty stores many, CTA versus
Car ridiculous. CTA aka super mugger
Mover, aka moving outhouse.
Getting home good luck.
End of that story

Leaving Soon, just not soon enough
1 month ago

Chicago told Ken Griffin not to let the door hit him on the way out (it didn’t).
Maimi is now booming, cannot find enough offices. Chicago is in a death spiral thanks to the democrats disregard for the taxpayer’s wallet and safety.

Ex Illini
1 month ago

I don’t see any reason to think this is going to get better any time soon, if ever. Business people are very good at doing a cost/benefit analysis, and downtown ends up being increasingly unattractive in most cases. It ends up being a self fulfilling prophecy at some point, as more space becomes available. Then there’s the brainstorm of the progressive leadership to turn downtown into Cabrini Green part duex. Nobody wants to be part of that.

debtsor
1 month ago
Reply to  Ex Illini

Spouse’s office is doing a national search for high level manager because they can’t find anyone qualified locally who is willing to travel into the loop. They found one out-of-state candidate who actually sat for an interview, and during the interview, expressed serious reservations about actually moving to Chicago and going into the office, wants to work remotely.

Ataraxis
1 month ago
Reply to  debtsor

I’ve mentioned this before, ALL my neighbors here in semi rural NC know what’s going on in Chicago. Every single one.

debtsor
1 month ago

Thanks Lori, you made me never want to return downtown ever again!

SIGN UP HERE FOR FREE WIREPOINTS DAILY NEWSLETTER

Home Page Signup
First
Last
Check all you would like to receive:

FOLLOW US

 

WIREPOINTS ORIGINAL STORIES

Chicago Teachers Union contract demands are totally divorced from reality – Wirepoints

Details emerging about Chicago Teachers Union’s upcoming contract show just how divorced its demands, both extreme and expensive, are from the reality at Chicago schools. It’s not just about massive salary increases, but also about money for migrant students, climate initiatives, abortions and gender-affirming care. About blocking parental notification. Count on CTU’s demands to veer further from reality until the public finally says no. 

Read More »

Gov. Pritzker’s ‘ethics reform’ eliminates competitive elections and choice for voters – Wirepoints on AM 560 Chicago’s Morning Answer

Ted joined Dan and Amy to talk about a new law passed by the Democratic supermajority and signed by Gov. J.B. Pritzker that results in brazen election interference, keeping Republicans off ballots; about a referendum that tests the waters for a renewed progressive income tax hike; about how the Parental Notification referendum question was knocked off the ballot; and why laws like that pass so easily.

Read More »

Chicago needs more champions of literacy like Willie Wilson – Wirepoints

It’s rare to see city leaders in Chicago take an open, unabashed stance on the collapse of literacy. To complain is deemed as too political, too racist or too anti-public schools. So it’s refreshing to see Willie Wilson, a successful businessman and leader of the black community, call for a literacy initiative “with the goal of getting 100% of Black students reading at grade level.”

Read More »

WE’RE A NONPROFIT AND YOUR CONTRIBUTIONS ARE DEDUCTIBLE.

SEARCH ALL HISTORY

CONTACT / TERMS OF USE

8
0
Would love your thoughts, please comment.x
()
x