Tag Archives: office space

For Rent: Chicago Office Leasing Up Again

Chicago office space

Entering Q3 of 2021, office rentals in downtown Chicago are beginning to fill up again. As businesses determine protocols for hybrid work models, more and more companies are seeking office space.

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.

The cost of rent also increased by 0.7%, with an average of $40.70 per square foot.

Developer R2 Bringing Innovative Business Space to Pilsen

Matt Garrison, managing principle of R2, a Chicago-based developer, announced that his company is planning to convert a 300,000 square-foot warehouse into office space. He said when the space in Pilsen is done it will be one of the largest office projects completed outside the Chicago central business district.

As of today R2 has the potential for a deal with a group of investors headed by Raymond Chin who own the five-floor vacant structure located at 465 West Cermak Road, along the river.

R2 has been rapidly looking for projects to develop non-traditional office locales, and its venture into Pilsen is just the latest on the Near South Side of Chicago.

Garrison explained that R2 is constantly looking for new areas for innovative offices as a response to the high cost of property in other areas of Chicago.