Chicago (downtown) ranked in the top 50 for prime office occupancy costs in the world, and, came in fourth for the largest 12-month increase in the nation, according to CBRE Research’s latest annual Global Prime Office Occupancy Costs report.
With the strength of a very active downtown office leasing market, Chicago has become more expensive, as it saw a 10.2 percent prime occupancy cost increase over a 12-month period as of Q1 2017, making it the fourth-fastest growing in the US, eleventh fastest in the world, and, placing it 48th on the top 50 list in the world for overall costs.
In March, CBRE noted in its Global Prime Office Rents survey that prime net rents in Chicago’s top office properties, a subset that comprises approximately 14 million square feet, rose 19.9 percent from 2015 to 2016.
This latest survey once again demonstrates strong price growth in the Chicago market by tracking prime office occupancy costs for the same properties—which reflect prime net rents, plus local taxes and service charges—for the 12-month period of Q1 2016-Q12017.
“The downtown market has been very active the last few years,” said Sara Spicklemire, senior vice president with CBRE. “Demand is still very healthy for high-quality space and we continue to see positive absorption. As long as a flight-to-quality and inbound migration to the urban core continues, I don’t see this trend reversing.