Although uncertainties remain within Chicago’s Central Business District (CBD), Tenants, Landlords and investors have been able to remain optimistic.
Developments and Office Trends in the Chicago Central Business District
Although uncertainties remain within Chicago’s Central Business District (CBD), Tenants, Landlords and investors have been able to remain optimistic. The new development pipeline is bringing 3.6 million square feet of space to the market in 2019 and fueling the continued demand for high-quality space. The division between quality assets and older assets has become more pronounced throughout 2018 and are expected to widen further. The growing number of options available to Tenants along the CBD will increase the overall vacancy rate in the market.
Despite the increased vacancy, companies are continuing to migrate to Chicago’s CBD, being attracted to the diverse local economy, talented labor pool, and world class infrastructure. As newer supply comes online and attracts Tenants from older Class A assets, a subset of older high-quality space is expected to become available. Class B Tenants looking for more value in their leases could have an opportunity to absorb the older space, resulting in the bulk of shadow space occurring in Class B assets. Overall, the market will gradually shift in favor of Tenants as over 5 million square feet of office space delivers over the next twenty-four months.
This market trends piece was developed by our partners at CBIZ Gibraltar. Have real estate needs in Chicago? Contact CBIZ Gibraltar today.
Steve Joseph, President and CEO of CBIZ Gibraltar Real Estate Services, has specialized in providing conflict-free tenant representation to clients for over 31 years. Throughout his tenure, Steve has completed over $7.5 billion dollars of transactions throughout the United States.
Steve specializes in structuring complex real estate transactions for a broad spectrum of clients, including major public corporations, non-profits, financial services, insurance, legal, professional services, privately held, R&D, as well as technology and government entities.
Steve was a principal at the Trammell Crow Company for many years, quickly becoming one of the company’s top producers in the nation and Chicago’s top producing broker. Steve’s objective was to build a firm dedicated to representing tenants both locally and nationally, offering all of the services provided by the multi-national real estate firms, on a conflict-free basis. Steve’s goal of conflict-free representation encouraged him to start Gibraltar.
Shortly after starting the firm, he was approached by CBIZ Inc. (NYSE), the nation’s leading professional services firm. CBIZ acquired Gibraltar Real Estate, and Steve has led the company’s real estate practice ever since.
Since its inception, CBIZ Gibraltar has expanded its specialties to include, not only tenant representation, but also to assist tenants with site selection, portfolio management, program management, tax incentives and operating expense auditing.
Steve’s tenure in the commercial real estate industry has drawn much success, and in 2017, Steve was named one of the “Most Influential Commercial Real Estate Brokers in Chicago” by Crain’s.
Outside of his professional career, Steve supports and is involved with multiple charities and community organizations. Steve sits on the board of the Anti-Defamation League and is supportive of Catapult Technology Incubator as well as multiple charitable organizations, including PAWS and the Anti-Cruelty Society.
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