Chicago Office Market
Leasing volume was steady in the fourth quarter of 2023, with roughly 1.8 million SF being completed. Tenants continue to upgrade spaces as they contract, moving into higher-end buildings and spending more on buildouts. The market saw vacancy increase this quarter due to sublease terms expiring and significant negative absorption as contractions signed in the last 24 months occurred.
There has been a tightening amongst Trophy Towers and view space on the top floors. With the last of the new construction delivering at the start of 2024, expect continued competition for the top spaces in the market. This might benefit Class A- or Class B buildings as tenants are unable to get into the top-tier buildings.
Download Chicago CBD Office Market Report 4Q23 (PDF)
Download Chicago Suburban Office Market Report 4Q23 (PDF)
Chicago Industrial Market
Absorption in the fourth quarter of 2023 totaled 5.6 million SF, finishing 2023 with 2 straight quarters of positive quarter over quarter absorption growth despite tenants remaining cautious amid the higher interest rate environment.