Average 2018 leases compared to floor plates hint to where larger deals happen in Chicago
Leasing across almost every submarket in Chicago experienced positive absorption in 2018, and the CBD as a whole had a record year.
March 12, 2019
- Leasing across almost every submarket in Chicago experienced positive absorption in 2018, and the CBD as a whole had a record year. Looking into how each submarket filled their space in 2018, however, can indicate just how desirable that space was to bigger, more stable tenants.
- For average tenant size, Class A corresponds roughly to the average building floor plates by submarket. Whereas typical Class B lease sizes were smaller than their floorplates across the whole market. Less-than-optimal space doesn’t drive demand in the same way it does Class A
- In River North, Class A space has such large floor plates (222 Merch, 350 N.O.) that it can more efficiently absorb large tenants, while River North B space has more brick & timber creative office and multi-tenanted spaces. With less parity in leases versus floor plates in West Loop, it reflect just how efficient the Class A market is to River North where redeveloped large floorplate buildings exist
Source: JLL Research
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