November 1, 2002
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Colliers B & K examines Chicago real estate
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The 2002 Market Report: Chicago Metro, released by Colliers Research, examines real estate from industrial, office and investment perspectives. The results of the study show that after eight years of economic expansion, the industrial real estate market demand and overall activity peaked in 2000, which was the best year in recent history.
Because such an ample supply of real estate space, the sublease market rocketed. With the troubled technology market and the rash of consolidations across all industries, there was hardly a sector that did not contribute to the abundance of new sublease space available. The result was the addition of 4,399,971 square feet of sublease space.
Negative net absorption reappeared in 2001. While 2000 was a banner year with positive net absorption totaling almost 4,000,000 square feet, 2001 resulted in negative 100,340 square feet of net absorption. The principal reason was that the glut of sublease space caused tenants to search for inexpensive sublease space options at the expense of the direct real estate market.
For more information or to get a copy of the report, visit Colliers.
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