Class A buildings west of the River and north of Madison reveal a leasing advantage to entire Chicago submarket
West Loop buildings have generally commanded some of the highest rents across the Chicago office market.
May 08, 2019
- West Loop buildings have generally commanded some of the highest rents across the Chicago office market. While Wacker Drive remains a premier address in the city, a cluster of Class A assets west of the river and north of Madison Street, near the split of the Chicago River has outperformed the West Loop by a significant margin.
- The seven buildings included in the sample account for over 6.4 MSF of the total submarket, or 16.7% of the West Loop inventory. Over the past five quarters, those six, less 500 W. Madison, accounted for 25.1% of all West Loop Class A absorption from Q1 2018 to present – outperforming the other West Loop Class A assets relative to their net absorption and percentage of total inventory by nearly 9%. These six assets also show a rent premium of $2.53, or 8.25% to the rest of the West Loop Trophy & Class A market.
Source: JLL Research