Chicago Is Adding 2.4M SF Of Office Space In 2018, Nearly All Of It Downtown

A rendering of John Buck's 151 North Franklin
Courtesy of John Ronan Architects
John Buck's 151 North Franklin, Where A Large Block Of Downtown Office Space Was Taken By Facebook.

Chicago is a top-10 U.S. market for new office deliveries in 2018, according to a new report from CommercialCafé. The 2.4M SF in new inventory, led by the arrivals of 625 West Adams, McDonald's new West Loop headquarters and 151 North Franklin, place Chicago seventh on the list of the top 50 markets for office deliveries next year.

What makes Chicago's pipeline stand out more is it bucks a national trend of office construction shifting from urban cores to the suburbs. Of the nearly 75M SF in new U.S. office inventory scheduled to go online next year, 35M SF are in suburban areas and only 15M SF are in central business districts. The Chicago suburbs are in a steady rebound from the post-2008 real estate collapse, but vacant corporate campuses are the strongest proof that demand for new office construction in the suburbs is lagging, compared to what is happening in the CBD and adjacent submarkets.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Chicago Newsletters
Related Stories

Where Occupier Fit-Outs Are Going Wrong And Why The Answer Is 70%

Scale Without Blind Spots: Why National Contractors Must Lead Locally

Denver Tech Center Office Tower Trades Hands For First Time In 14 Years

Law Firms Drive Boston Office Rents To Record Highs

3 Houston Office Properties, Vacant To Nearly Full, Change Hands

Deutsche Hypo Finances Zadelhoff's Amsterdam Offices With €75M Loan

Workers At 6 Chicago Hotels Go On Strike Ahead Of Chicago Marathon

SFF Realty Partners Extends Spending Spree With $82M Acquisition In Downtown San Jose

Years Later, Millions In Chicago Housing Projects Remain Unbuilt

Drawbridge Realty Acquires 180K SF Office Building In Sunnyvale For $219M

Downtown Los Angeles Retail, Office Hub The Bloc Up For Sale

Distress Divide: How Private vs. Institutional Investors Are Thinking About D.C. Office