Strong West ‘Burbs Face Headwinds
As seen in Real Estate BISNOW
NAI Hiffman CEO Dave Petersen says that the East/West corridor office market is trending in the right direction but could find a roadblock in the overall US economy and global events. Hear more from Dave at Bisnow’s State of Chicago’s West Suburbs this Tuesday at the Westin Lombard Yorktown Center. Register here.
Dave tells us that deals are happening in the west ‘burbs and absorption is strong, especially when compared to other submarkets. If this transaction velocity holds up, he says the vacancy rate could decline in the next 24 months to the mid-to-upper teens from its current 24%. For instance, a deal floating around for months was recently inked when EN Engineering took 83k SF at Cantera Meadows in Warenville’s Cantera Business Park. Still, the submarket faces hurdles: slow job creation, CRE debt coming due from the last boom, and fiscal turmoil in the Eurozone.