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Market Report

Chicago Office Market Report

4Q 2022

Headwinds Subside Across the Metro;
Fulton Market Proves Fastest-Growing Business District

Downward pressure on fundamentals slowing. Office availability continues to trend up in Chicago, however, the pace of attrition is retreating. Vacancy climbed just 60 basis points over the past four quarters ending in June, paling in comparison to the combined 390-basis-point escalation during 2020 and 2021. Furthermore, annual net absorption in 2022 is projected to return to positive figures, after a substantial net loss throughout the previous two years. This marketwide recovery is bolstered by suburban demand from a variety of healthcare-centric companies, many of which require in-person interaction. Of all the new suburban leases signed in the trailing 12 months ending in June, nearly 10 percent were comprised of healthcare-related businesses, the most of any industry.
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