Research Report - Chicago Office Sublease
2016: THE YEAR OF THE SUBLEASE May 2016
Chicago’s current 4 million square feet (sf ) of sublease availability has reached a level not seen since the height of the recession in 2009. Two thirds of the total availability comes from three sectors: Legal, TAMI (Technology, Advertising, Marketing and Information Technology) and FIRE (Financial, Insurance and Real Estate). While financial difficulty explains some of the reasons companies in these sectors are trying to shed space, it doesn’t tell the whole story. In fact, nearly 80% of the sublease availabilities examined are the result of other motivations.
LET’S SET THE STAGE Today, a total of 4 million sf of sublease space is on the market, a 20% increase year-over-year, from the 3.3 million sf in Q1 2015. Since the beginning of 2014, available sublease space has increased by 34%. Of the total 4 million sf, 3 million
18% 553K SF FIRE
sf consists of sublease opportunities with at least 20,000 sf of contiguous space. The following report takes an in-depth look at this subset of data.
24% 736K SF TAMI
WHO IS SUBLETTING SPACE?
Legal TAMI FIRE
763,000 SF 25% 736,000 SF 24% 553,000 SF 18% 214,000 SF 7% 178,000 SF 5.8% 154,300 SF 5% 152,400 SF 5% 73,000 SF 2.4% 47,000 SF 1.5% 35,000 SF 1% 22,000 SF 0.7% 21,000 SF 0.7% 114,800 SF 3.7%
25% 763K SF LEGAL
Professional & Business Services Transportation & Logistics
Legal, TAMI and FIRE tenants account for 67% of sublease availability
*Total SF is rounded to the nearest thousandths
24M SF TOTAL DIRECT SPACE AVAILABLE
4M SF TOTAL SUBLEASE SPACE AVAILABLE
14% % OF TOTAL
5.5 YRS AVERAGE SUBLEASE TERM REMAINING
43% % OF SUBLEASE SPACE LOCATED IN WEST LOOP
70% % OF SUBLEASES
AVAILABLE SPACE IS SUBLEASE SPACE
IN CLASS A BUILDINGS
CUSHMAN & WAKEFIELD CHICAGO
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