Today is	Commercial real estate appraisals for Chicago Cook County and the Collar Counties of Illinois CommercialAppraiser.net The official web site of Peterson Appraisal Group, Ltd. 6035 N. Northwest Highway, Suite 200 Chicago, IL 60631 Phone:773/763-6750 Fax:773/763-6492 E-mail: PAG@CommercialAppraiser.net
	Appraisal Order Form Home Contact Us Client List Appraisers Services Downloads Search Engine Links Metacrawler Metasearch Links Web Site Map	SUBURBAN CHICAGO OFFICE MARKET OVERVIEW The metropolitan Chicago suburban office market operates with approximately 99 million square-feet of net rentable area (NRA) in six submarkets. Demand continues to be weak in the suburban office market at 3rd quarter 2005 and the direct vacancy rate stands at 17.8%. Factoring in sublease space, the overall availability rate increases to 21.7%.
	Overviews Downtown Chicago Office Market Suburban Chicago Office Market Chicago Industrial Market Chicago Retail Market Chicago Self Storage Market	The following shows the inventory, vacancy and rental rate statistics for the suburban office market according to the CB Richard Ellis, MarketView Chicago Suburban Office, Third Quarter 2005: CHICAGO AREA SUBURBAN OFFICE MARKET STATISTICS 3rd QUARTER 2005 Market Rentable Area SF Vacancy Rate% Net Absorption SF Construction SF Average Lease Rate Range $PSF Overall Vacancy Rate Northern Suburbs* Class A 8,858,903 11.9% (71,398) 0 $14.00 to $18.00 18.1% Class B 7,030,129 20.2% 71,147 0 $11.00 to $14.00 23.3% Class C 4,754,668 13.6% 21,021 0 $7.00 to $10.00 15.6% Subtotal 20,643,700 15.1% 20,770 0   19.3% Northwest Suburbs Class A 12,025,527 16.3% 105,409 0 $12.00 to $16.50 22.7% Class B 10,147,388 23.4% (90,272) 0 $9.00 to $12.00 26.6% Class C 3,229,314 14.0% (49,496) 0 $7.00 to $9.00 14.8% Subtotal 25,402,229 18.9% (34,359) 0   23.3% O'Hare Class A 7,178,940 17.5% 92,632 0 $10.00 to $15.00 23.7% Class B 4,102,631 16.8% 35,133 0 $7.00 to $10.00 20.2% Class C 2,968,554 21.8% (35,159) 0 $5.00 to $7.00 23.0% Subtotal 14,250,125 18.2% 92,606 0   22.5% East-West Tollway Class A 11,470,422 19.6% 70,839 0 $16.00 to $18.00 22.4% Class B 12,999,435 20.60% 102,881 0 $16.00 to $18.00 21.9% Class C 6,612,980 14.8% 39,690 0 $6.50 to $8.50 21.1% Subtotal 35,217,893 18.4% 322,344 0   21.9% West Cook Class A - - - 0 $0 to $0 Class B 88,800 0.0% 0 0   0% Class C 1,009,304 16.3% 13,965 0 $8.00 to $12.00 16.3% Subtotal 1,098,104 15.00% 13,965 0   15.0% South Suburbs Class A 468,053 19.0% (13,084) 0 $11.00 to $15.00 19.0% Class B 1,061,980 27.3% 8,235 0 $9.00 to $12.00 28.9% Class C 857,787 10.1% 4,194 0 $7.00 to $9.00 10.1% Subtotal 2,387,820 19.5% (655) 0   20.2% Suburban Overall 98,999,871 17.3% 414,671     21.7% *Combines the Lake County, North Suburbs & Lake Shore submarkets Source: CBRE MarketView Suburban Office, Third Quarter 2005 Absorption and Vacancy For the first time since fourth quarter 2004, CB Richard Ellis reports a slight decrease in vacancy, in conjunction with an increase in absorption. The direct vacancy rate fell 17.8% and net absorption was 414,071 square-feet. The most improved submarket is the East-West Tollway submarket, which saw vacancy decline from 19.4% at 2nd quarter to 18.4% at 3rd quarter. Negative net absorption occurred in the Northwest Suburbs and South Suburbs. Small and mid-sized companies increased leasing activity according to the brokerage so that positive absorption was registered in the North Suburbs, O'Hare, East-West Tollway and West Cook County submarkets. Lease Rates Generous tenant improvement allowances, free rent and other concessions continue to characterize most transactions and rental rates remain flat. Construction Despite investment activity, new construction starts have stopped in the face of modest absorption. A few conceptual proposals remain in the pipeline awaiting improved market conditions. Investment CB Richard Ellis noted a resurgence of domestic investment activity in the area market, citing Cargill Financial's acquisition of 1000 and 1100 Warrenville, a 2-building, 555,000-square-foot office complex in Naperville and California-based Koll Bren Advisors acquisition of the 2-building, 508,000 square-foot Woodfield Corporate Center complex in Schaumburg. The brokerage speculates the flow of fresh capital into the market may imply expectations of increased rental rates in the foreseeable future.
		CommercialAppraiser.net The official web site of Peterson Appraisal Group, Ltd. 6035 N. Northwest Highway, Suite 200 Chicago, IL 60631 Phone:773/763-6750 Fax:773/763-6492 E-mail: PAG@CommercialAppraiser.net © 2007 Peterson Appraisal Group, Ltd.