Brian Edgerton’s 2017 Mid-Year Medical Office Review & Forecast

Across a 42.2 million-square-foot inventory, the Chicagoland medical office market has been relatively flat over the past 18 months, with a year-to-date total net absorption of negative 112,000 square feet following an overall 2016 net absorption of 118,000 square feet. As a result, the vacancy rate has hovered between 12.5% and 13% during this time period. While the previous six years have seen a consistent absorption of space, averaging over 210,000 square feet per year between 2010 and 2015, the recent slowdown in activity may be a circumstance of the current political climate.