Various uncertainties face Chicago metro office market

The Chicago CBD office vacancy rate declined in the second quarter, falling 30 basis points to 12.8 percent, according to Knight Frank. This is the lowest it has been since the beginning of 2018.

While asking rents fell slightly from the prior quarter to $36.37, they were up 2.6 percent year-over-year. Downtown leasing volume has been high for several consecutive quarters, and many of the new developments have secured anchor tenants; however, a majority of these tenants are moving from elsewhere and downsizing as they relocate, leaving the market to anticipate a slight uptick in vacancy if the left behind space is not backfilled.

With a number of uncertainties facing the Chicago metro office market (such as a new mayor, a new governor, increasing taxes, the legalization of marijuan