Class-A North Suburban Properties Lease Up, While Most Of The Market Stays In The Doldrums
Although the migration of companies into Downtown Chicago has left a number of huge suburban spaces vacant, many Class-A buildings continue bringing in tenants and pushing up rental rates.
The north suburban submarket recorded 225K SF of positive absorption in the third quarter, the only suburban region to see positive absorption. Much of it was attributed to several key leases at Six and Nine Parkway North, located at the 85-acre Parkway North Center in Deerfield.
Third quarter vacancy in north suburban Class-A properties dropped to 10.3%, down 130 basis points from the previous quarter, according to Colliers International, and about half the overall north suburban rate of 20.3%.
Lundbeck, a global pharmaceutical company, signed a long-term expansion and extension at Six Parkway North. The firm leased an additional 24K SF to bring its occupancy to 73K SF. Savills' John Goodman negotiated on behalf of Lundbeck.
Also at Six Parkway, Advanced Clinical signed a new lease for 16K SF and will move from Ten Parkway North. The company was represented by Transwestern’s Larry Serota and John Marquardt.
At Nine Parkway North, Michael Silver & Co. signed a long-term lease for 19K SF. The firm will move from 5750 Old Orchard Road in Skokie in 2020. Goodman, along with Isabel Preskill, represented the tenant.
Finally, global executive search and leadership consulting firm Spencer Stuart took nearly 8K SF at Nine Parkwa. Bill Rogers and Isabelle Montagne with JLL negotiated the deal on behalf of Spencer Stuart.
Parkway North Center has six Class-A office buildings with conferencing and training facilities, several upscale food options, an athletic club, daycare center and a Marriott Hotel.