Suburbs Beat CBD in 2014
Ready for a shocker? Suburban office absorbed more space than downtown Chicago in 2014, according to NAI Hiffman. (That’s nearly 1.9M SF of space absorbed compared to 44k SF in the CBD.) Suburban vacancy, especially across older product, is still high at 18.6%, but it’s a huge improvement from the ‘burbs’ peak at 23.7% four years back.
The suburbs’ positive trending fundamentals are thanks to less ownership-focused and incredibly transit-oriented Millennials, according to HFF managing director Chris Carroll (pictured). And they’re not short on investors looking for the right turnaround play. Boston-based The Davis Cos just bought its sixth suburban office property since entering the market at bottom in 2010.