Monthly Archives: December 2009

Because more firms plan to layoff workers than hire workers tenants will remain firmly in control in the Chicago office market.

Employment drives office space consumption, period. Without jobs creation there is no demand for office space.  Lack of demand for office space will leave the glut of sublease space on the market to languish and continue to force building owners to complete directly with this deeply discounted space.

Tom Corfman writes,

“the largest real estate deal in Chicago history is turning into the biggest example of the grim plight of many properties in the city’s downtown office market.

A venture led by New York-based Tishman Speyer Properties has defaulted on part of a package of loans used to finance the $1.72-billion purchase of six prime office towers in Chicago’s Loop during the frenzied real estate market of 2007, sources familiar with the deal say.”

from Crain’s New York Business.