Don’t listen to the headlines! Office rebounding slowly as companies navigate period of experimentation

By Mia Goulart, Senior Staff Writer

The advent of remote work has transformed the office landscape of most major metros across the U.S., but as Downtown Chicago’s hustle and bustle continues to reemerge, certain trends—and certain neighborhoods—are leading the rebound.

Illinois Real Estate Journal recently spoke with JLL Executive Vice President of Brokerage Jamie Wallenberg and Cresa Senior Vice President Michael Marrion to discuss the current state of the market and interestingly, they both came up with one conclusion: the state of the market is much more positive than the headlines reflect.

The last six months have reflected significant leasing activity of upwards of three million square feet, whether it be growth or rightsizing in terms of footprint, as companies continue to look at this as a tool to continue to drive employees back to their office space. And within the office? Employees are returning. In fact, Chicago, compared with all the gateway OFFICE (continued on page 8)

Industrial construction market still one of the strongest in U.S., but shifts in demand starting to surface

By Mia Goulart, Senior Staff Writer

Chicago’s industrial construction market stands out as one of the strongest in the U.S., and while it’s not often that market conditions undergo significant transformation, there are now noticeable shifts in the patterns of demand.

To start, and perhaps most shockingly, lots of firms have seen a slowdown in the push for 500,000- to 1,000,000-square foot speculative buildings, with clients focusing more on buildto-suits than in years past. PREMIER Design + Build Group Senior Vice

President,

Midwest

DON’T LISTEN TO THE HEADLINES! OFFICE REBOUNDING SLOWLY AS COMPANIES

NAVIGATE PERIOD OF EXPERIMENT The advent of remote work has transformed the office landscape of most major metros across the U.S.

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APRIL/MAY 4

INDUSTRIAL CONSTRUCTION MARKET STILL ONE OF THE STRONGEST IN U.S., BUT SHIFTS IN DEMAND STARTING

TO SURFACE Chicago’s industrial construction market stands out as one of the strongest in the U.S., and while it’s not often that market conditions undergo significant transformation, there are now noticeable shifts in the patterns of demand.

SOUTHEAST WISCONSIN POSITIONED TO BE NEXT BIG INDUSTRIAL HUB?

The region has remained an unmined gem compared to neighboring submarkets, but it’s unlikely it will stay that way for long, as the region continues to making a name for itself as a hub for industrial end users.

TECH GIANTS SALESFORCE AND META SEEK TO OFFLOAD OFFICE SPACE IN DOWNTOWN CHICAGO San Francisco-based Salesforce, along with Meta, are marketing a combined 240,000 square feet of office space in Downtown Chicago, as reported by CoStar News.

CHICAGO SEES NO. 10 LARGEST MONTHLY RENT INCREASE AMONG LARGEST CITIES IN U.S.

It’s been over three years since the world was turned on its head by COVID-19, but the real estate market is still feeling its effects as rental prices continue to climb higher…and higher…and higher.

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