Downtown migration and the booming tech industry continue to dramatically change the commercial real estate market, which is why we’re thrilled to host Bisnow’s 6th Annual Chicago State of the Market on Oct. 28 (starting at 7am).
CBRE|US Equities’ Drew Nieman will be hosting us on the 82nd floor of Willis Tower (below, which his firm manages), and he filled us in on some major market trends. The No. 1 thing office users are up to is densification, he says, pushing more people into less space to boost efficiency. Since this often means tenants are moving into smaller spaces, there’s been a flight to quality now that they’re able to trade up.
In addition to boosting retention and recruitment, densification has resulted in office tenants looking for new space much earlier than they normally would relative to their lease expiration, Drew says. (Meaning today, tenants with leases expiring in ’19, ’20, ’21, and ’22 are looking to move in ’16, ’17, and ’18.) If tenants need to leave early they will, Drew says, and the benefits of shrinking can offset the economic consequences. At the office, Drew’s been busy working on leasing at John O’Donnell’s 150 N Riverside office tower and he’s excited for the beginning of paddle season. Get your event tix here!
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