Chicago’s downtown firms leased 2.2 million square feet in Q3, nearly 20% more than 2020. Nevertheless, more than 20% of office space in downtown Chicago remained available for rent, mostly because tenants aren’t expecting to operate at full capacity and are not looking for big spaces. Some industry experts say that many of the leases being signed are for companies that gave up their rentals for the majority of 2020 and the beginning of this year. Lockdowns and cost-saving measures had these businesses working remotely; now they are looking to reopen an office and maintain a downtown presence.
A new study conducted by Zillow puts the median rent across Chicago at what turns out to be a not-so-high $1,642 per month. Just compare that figure to a typical rental in San Jose, the Silicon Valley town outside San Francisco: $3,398 per month.
According to Zillow’s study the Chicago figure is pretty average for the United States in general, only slightly higher than $1,382 per month. Additional good news for Chicagoans is that their rents seem to be holding pretty steady in comparison to the rest of the country. Rentals in Chicago only 1.4 percent this past year, compared to an increase of 4.5 percent in the rest of the US.
It is expected that rents in downtown Chicago will be eased when new construction there is completed.
The cheapest rentals out of 35 of the country’s largest cities are in Pittsburgh where the average stands at only $1,097.