COOK COUNTY, Ill. (WBBM NEWSRADIO) -- The owners of suburban office buildings had hoped that more people returning to offices this fall would mark a turning point in vacancies, but they’re not seeing that yet.
The vacancy rate for suburban office space hit a new record high of 26.5 percent at the end of last month, topping the 26.1 percent rate midway through the year and marking for third consecutive quarter of all-time highs for vacancies.
However, Crain's Business reports that while there are some big leases being signed in buildings with the best amenities, some companies have been taking advantage of deals in the soft market.
Andrea VanGelder, international director for JLL, who represents tenants in the suburbs, told Crain's that companies are favoring spaces where their employees will feel compelled to work, even if they can do their job from home, and that more companies can afford such spaces while they downsize their offices.
"They want to take advantage of COVID rates, when they still think the landlords are down," she said.
The freefall that started at the beginning of last year continues and there was hope for a 3rd quarter rebound. However, the surge in Delta Variant cases delayed that.
At the end of 2019, before the pandemic, the suburban office vacancy rate was 22 percent.
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