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Transaction volume accelerates in Downtown Chicago as firms codify post-pandemic occupancy plans
The Downtown Chicago office market is exhibiting early signs of recovery, with weakened fundamentals beginning to stabilize and leasing activity accelerating. Companies seeking to capitalize on favorable market conditions and ample quality space options have shown readiness to re-engage the market. This is despite the impact of the Delta variant, which has prompted companies in select industries to postpone office re-openings to 2022. With more than 2.2 million square feet (msf) leased in the third quarter, Downtown Chicago observed its highest quarterly level of transaction volume since the start of the pandemic. The deal tally was bolstered by Kirkland & Ellis, which announced its intention to relocate in 2023 to 600,000 square feet (sf) at Salesforce Tower, currently rising over Wolf Point South. In addition, Kraft Heinz recommitted to 162,000 sf across five floors at Aon Center.