- A New Development Cycle:
Law firm Sidley Austin announced plans to relocate to 725 W Randolph, a proposed 968,000-square-foot office tower to be located on Fulton Market’s eastern edge. This bold announcement affirms the outsized demand for high-quality space. - Direct Vacancy Improved:
Direct vacancy decreased 20 basis points quarter-over-quarter from the 25.30 percent rate reported in the first quarter to the 25.10 percent rate found at mid-year; Class A direct vacancy was 21.59 percent at mid-year. -
Direct Net Absorption Increased:
There were 234,975 square feet of move-ins reported in the second quarter. The Class A figure was even stronger with 268,560 square feet of move-ins. Despite this fact, year-to-date direct net absorption remained negative at -103,639 square feet overall. - Leasing Activity in Class A Space Ticked Up:
There was 1,799,042 square feet of leasing activity in the CBD’s Class A portion, an increase of 18.4 percent from the first quarter and a 3.3 percent increase year-over-year. -
Renewals Drove Leasing Activity:
The top five leases reported in the second quarter were renewals and each of them was larger than 100,000 square feet. Two of these leases had an expansion component. - Capital Markets Activity Accelerated:
Nine building sales within the tracked CBD office inventory were recorded. The sale of 1201 W Lake St in Fulton Market at $274.32 per square foot is the highest price paid for a downtown office building on a per-square-foot basis since 2022.
