Tech sector in Downtown Chicago reconsiders Class B product in 2019
Tech companies accounted for about 2.0 MSF of leasing in 2019.
December 18, 2019
- Tech companies accounted for about 2.0 MSF of leasing in 2019.
- 24 leases accounted for 82.0% of the square footage taken down by tech across Class A buildings, supporting the narrative that this industry is overwhelmingly willing to pay a premium for high quality space, further increasing competition for traditional users. However, compared to the coasts, Class A space comes at a discount in Chicago, which has set the City apart as an attractive market to expand operations.
- This year, the number of tech leases signed in Class B buildings was up 44.4% with an average square footage of 25,000 SF compared to 2018 where the average lease was 8,000 SF. This illustrates the story that investments made in renovations of Class B product that focus on tenant experience is valued by tech firms, both established or in growth mode, as these companies seek offices to aid in their recruitment and retention goals.
Source: JLL Research