Thursday, March 6, 2008

Chicago offices in 2008 -- enjoy the vacancy rates while you can

Marcus & Millichap predicts another decline in Class A downtown vacancies in 2008, and rising rents to boot. That's good news if you own a trophy building downtown, but not if you own Class B or C space.

And how long will this trend continue? How much new space is coming online in 2009? I actually read a prediction somewhere that they don't think it will be a big deal, but I disagree. If you are a tenant and can wait it out, I would.

Hang on to your hats.