No Susan Boyle
There will be no heroic, underdog tale in any suburban office markets in 1Q, according to a Colliers Bennett and Kahnweiler report.
Vacancy rates are still up (21.8 % over 20.9% at year end), no new construction was delivered to the market, and absorption decreases were smaller than previous quarters. Average asking rent increased to $21.06 per SF from $20.87, but put that confetti away because it's mostly due to taxes and increased operating costs. CBK signed a 26k-SF lease with Amata Office Suites in CityGate Centre in Naperville, but the Lisle-Naperville market's vacancy still increased 1% with the Alcatel-Lucent Campus and Arboretum Lakes, both in Lisle, going on the market.
The aging O'Hare market continued to struggle with 115k-SF of negative absorption, though CBK leased 37k-SF in the submarket at 5100 River Road in Schiller Park. The Oak Brook submarket was strongest, leasing 215k-SF to DeVry in two buildings. Healthcare companies dominated the north 'burbs again, with Astellas Pharma and Mead Johnson Nutrition leasing in Glenview. Vacancy in the northwest, meanwhile, reached 24.9 percent with 11 spaces of more than 100k-SF available. Sounds like a great place for a call center. Or 11 of them.