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Market Report

Chicago Retail Market Report

4Q 2023

Recent Tenant Demand Momentum Insulates
Fundamentals from a Softening Economic Outlook

Western suburbs lead Chicago’s nationally strong absorption. Over the four-quarter period ended in June, Chicago retailers absorbed nearly 4.4 million square feet of space on net, the most among major U.S. metros. Leasing in the western suburbs spanning Oak Brook, Naperville and Aurora was the most robust over this frame. Of the notable activity here, nearly 1 million square feet was within the single-tenant segment. A growing local resident base has been a major draw for home improvement retailers and automotive-centric businesses. National food chains and bank branches near business hubs also support nearby working professionals. These improved tenant demand trends helped lower the area’s overall vacancy rate by 110 basis points to 6.7 percent in June. 
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