Overall downtown asking rents did increase 3.3% year over year, to $40.96, but rents also slid by 0.1% from the first quarter.
Tenants continue to snap up the market’s Class-A space, according to Savills.
Over the first half of this year, the CBD saw about 948K SF of net absorption, with West Loop tenants accounting for 648K SF, according to a new report from Newmark Knight Frank.
The new developments rising in West Loop and Fulton Market had another healthy quarter as tenants seek upgrades.
“New space opportunities have been created by tenants giving back space or relocating from the submarket, including Walgreen’s forthcoming departure at Sullivan Center and Sargent & Lundy’s shedding of space at 55 East Monroe St.,” the firm said.
With developer Brookfield Asset Management recently starting an office conversion of the upper half of the Macy’s building on State Street, which it purchased for $30M in 2018, tenants will soon have a new 650K SF opportunity to consider.
Has already signed leases for about 600K SF in its 2.5M SF Old Main Post Office redevelopment, and may be on the verge of inking several other significant deals, including one with Uber for 450K SF, according to NKF. The company said San Jose-based Cisco is also rumored to be in negotiations to take 130K SF to consolidate workers from an office in Rosemont and at 525 West Van Buren St. “Regardless of where these tenants end up, the growth is what is important for the market, since many other industries are shrinking their footprints,” the firm said.