Research Infographic - Chicago Office Sublease

CHICAGO: THE YEAR OF THE SUBLEASE May 2016

With over 4MSF of sublease availability on the market today - a level not seen in Chicago since the height of the recession in 2009 - it is easy to assume this is because companies are experiencing financial strain. Upon closer examination, the industry breakdown and sublessor rationale tell a different story.

24M SF TOTAL DIRECT SPACE AVAILABLE

4M SF TOTAL SUBLEASE SPACE AVAILABLE

70% % OF SUBLEASES

5.5 YRS AVERAGE SUBLEASE TERM REMAINING

HOW DOES THE MARKET LOOK?

IN CLASS A BUILDINGS

WHAT INDUSTRIES ARE SUBLETTING SPACE? Legal, TAMI and FIRE tenants account for 67% of sublease availability. The Legal sector has the most sublease space on the market with 763,000 SF.

18% 553K SF FIRE

24% 736K SF TAMI

25% 763K SF LEGAL

WHY ARE FIRMS SUBLETTING?

Workplace strategies are evolving and most companies are subleasing to consolidate or right-size their office space.

WHAT’S THE QUALITY OF THE SPACE LEFT BEHIND? With the substantial quantity of sublease space on the market, there are a variety of space conditions available, from great built-out to shell space.

32%

20

21%

15

11%

17

10

13

5

6

# OF SUBLEASES 0

CONSOLIDATING / RIGHT-SIZING

FINANCIAL STRAIN

EXPANDING

41%

GREAT BUILT- OUT SPACE 34%

20%

5%

SUBLEASE REASON

DATED

SHELL / RAW

MOVE-IN READY

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Joe Broker Vice President joe.broker@cushwake.com +1 312 470 5555

Joe Broker Vice President joe.broker@cushwake.com +1 312 470 5555

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