First Quarter 2009 Chicago Downtown Office Market Report

CBD Downturn Continues
Chicago’s CBD office market downward trend picks up the pace and is unlikely to show signs of recovery before 2010.

Rental Rates Moving Lower
CBD rental rates moved lower and the trend points to a continuing drop through the second quarter. The current average gross asking rate, $29.59 per square foot, represents a 1.7% reduction from the fourth quarter average gross asking rate of $30.11 per square foot. Many landlords are agreeing to rents more than 10% below their asking rates, as well as offering more generous concession packages. All indications are that asking rents will continue to fall through 2009 while concessions such as rent abatements and tenant improvement allowances will continue to increase.

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