The overall Chicago office market has been idle in the second quarter of 2013. In fact, vacancy has increased slightly in 2Q 2013 in the Chicago metro area, along with lower absorptions across all submarkets.
There are several tenant trends that are responsible for this downturn. Many tenants have remained in their current spaces while renewing and downsizing by 10%-20%. Most businesses are still not hiring and are relying increased productivity from their current staff. Companies are continuing to downsize by clearing out old paper filing systems in favor of digital filing. Some businesses that are actively hiring and moving into new spaces are currently following the trend of “benching”. For office workers, this benching concept promotes collaboration and flexibility of movement. For tenants, it is an expense reduction in workstation costs.
Source : DTZ (Groupe UGL)