by Calculated Risk on 12/15/2008 05:42:00 PM

From the Business Ledger: Vacancy rates skyrocket in [Chicago] I-55 corridor

[A] slowdown in leasing along with new speculative buildings coming online and new sublease space hitting the market have combined in a “perfect storm” ... Since Jan. 1, the I-55 corridor vacancy rate has risen from 11.66 percent to 18.5 percent at the end of the third quarter.

Over the last few years I heard several times how there wouldn't be a sublease problem this time. Here was the story: during previous downturns there was a flood of sublease space, but then a number of companies were eventually squeezed for space when the economy recovered, so this time they would be smarter and hold the extra space waiting for the recovery.

So much for that theory.