Economy Strengthens, But Vacancies Remain

CHICAGO—The economy and job growth seems to be strengthening, but many in commercial real estate have begun asking why the office market remains somewhat anemic. MBRE has just published their May Market Report and points out that “according to the Bureau of Labor Statistics, Chicago added over 80,000 jobs in 2012, the second largest yearly gain in employment since before 2003.”

Furthermore, MBRE says that the downtown has also begun to have success with business incubators like 1871 and Catapult Chicago, both of which have started up a new generation of high-tech firms. Last month, for example, GlobeSt.com reported that Shiftgig, an online provider for the services industry, joined Catapult Chicago, and as a result, has grown, attracted new talent and will soon break away and seek out new downtown office space. Catapult entrepreneurs have raised approximately $8 million from investors in the past eight months and Galen Mason, a co-founder of Catapult, says he expects them to raise about $20 million this year.