Chicago Office Market
Leasing volume in the Chicago CBD totaled 8.4 million square feet in 2025 maintaining the market average of recent post-pandemic years. Vacancy increased to 26.1% in 4Q25, as tenants continue to relocate and right size into more economic and hybrid workplace formats. While demand for Trophy Towers and premium top-floor spaces has intensified, pushing rates for these high-end assets higher, this strength at the very top of the market has done little to offset the broader economic challenges affecting the majority of office space in the CBD.
Download Chicago CBD Office Market Report 4Q25Chicago Suburban Office Market
Leasing volume in the Chicago suburban office market totaled less than 5 million in 2025,a sharp decline from 2024 and the first time since 2022 than leasing activity has not reached that mark. Suburban Chicago vacancy ended 4Q25 at 26.8%, down slightly from 27.1% last quarter but still modestly above the 26.1% rate recorded a year earlier. Suburban Chicago average asking rents closed 4Q25 at $22.55 per square foot, up modestly from $22.02 in the third quarter but reflecting 2025 annual growth of 1.4%, with the strongest gains concentrated in Class A assets that benefited from flight-to-quality demand and amenity premiums.
Download Chicago Suburban Office Market 4Q25
Chicago Industrial Market
Fourth quarter net absorption totaled 5.2 million square feet, bringing the annual total to 5.9 million square feet and driving vacancy down 30 basis points to 5.2%. The industrial pipeline has normalized over the past year and now totals 11.6 million square feet, representing just 0.9% of total inventory. Leasing activity strengthened following a slowdown in the second half of 2024, with fourth quarter deal volume reaching 11.3 million square feet and bringing total annual leasing to 49.1 million square feet. Average asking rents continued to trend higher on an annual basis, holding at $6.57 per square foot in 4Q25 and reflecting 1.5% year-over-year growth.