The office market crashed at the start of the pandemic. Only now is the sector showing real signs of improvement. However, not all regions are recovering at the same rate.
Many Midwestern cities continue to post negative net absorption rates. However, if we examine two of the region’s biggest cities, we find ample evidence that things are still looking up.
Chicago
In Q1 of 2022, Chicago’s negative absorption rate continued, but with a pandemic low of just -72,000 square feet and 21.3% vacancy.
Meanwhile, signs of increased occupancy abound. The Concourse Chicago complex recently announced a new lease was signed, pushing them to 90% occupancy. Meanwhile, the brand new Wolf Point Tower is reportedly close to 100% occupancy.
Milwaukee
Milwaukee’s Q4 2021 numbers were slightly better than Chicago, with a 19.6% vacancy rate.
Meanwhile, positive signs include plenty of leasing and construction activity. Multiple Class-A office buildings have been recently bought or built, including 417 E. Chicago St. and the Golf Parkway Corporate Center.
Slow and steady
While the Midwest office recovery may be moving slower than, say, New York City, the upwards trend is strong.