Chicago Office Market Report

Demand rising in the CBD, suburbs maintain momentum. Chicago’s office market has been recovering slowly since early 2024, and that pace is likely to continue in 2026. The CBD noted rising vacancy for five straight years before nearly holding steady in 2025, as conditions began to improve. Leasing activity among 50,000-plus-square-foot properties here picked up in late 2025 compared to the same period in 2024, signaling modestly accelerating net absorption ahead. In the suburbs, vacancy continued to trend down in 2025, reaching its lowest level since 2020. Select areas, such as the northern suburbs spanning Deerfield-Lake Zurich-Waukegan, the Fulton Market area, and Schaumburg-Arlington Heights, carry strong momentum heading into 2026 after recording some of the largest declines in vacancy. Across the metro, a lack of ongoing speculative development should support further vacancy compression amid steady demand.