Chicago Suburban Q2 2020 Market Report
As the second quarter of 2020 wraps up, the market is looking back at the first full quarter of business during the COVID-19 pandemic. The suburbs have yet to see any positive movement as companies wait to see how the pandemic impacts business. Net absorption was negative for the 11th quarter over the past 3 years including YTD. As the flight to downtown continues, direct vacancy continues to move upwards, ending the quarter at 26.1%. This number represents just over 25.7M square feet of dark space. Additionally, direct available space reached new heights with 30.7%, 30.3M square feet, being available. Leasing activity was just a third of was it was last quarter with only 620,699 square feet of new deals completed. Development remains low with only two buildings under construction and none delivering during the quarter. Despite a grim capital markets outlook during the pandemic, there were a handful of transactions completed in the quarter. Most notably the purchase 709 Enterprise Dr in Oak Brook for $2.9M by Weesperijde. Average cap rates for the suburbs year to date are resting at 8.0%.
To learn more, download the Chicago Suburban Q2 2020 Market Report.