Posted Jul 03, 2007 08:10 pm CDT
A hiring spree by local law firms is in part responsible for a drop in office vacancies and a rise in office rents in Chicago.
Financial services firms and law firms looking for more space in the downtown area are behind a business boom for commercial landlords, which is encouraging higher rents, reports Bloomberg. The rent rise is also prompted by a shortage of new office building construction.
Current rent for downtown office space in Chicago runs between $22 and $55 per square foot–a relative bargain compared to offices in New York City. Cravath Swaine & Moore recently agreed to pay a breathtaking $100 per square foot, starting in 2008, to renew its lease on 600,000 square feet in Manhattan, ABAJournal.com reported last week.