Q2/26 Downtown Chicago Office Market Report

This quarter in Chicago’s downtown office market: 

• Leasing activity remained steady, though lower, with approximately 1.2 million square feet of direct deals completed in the second quarter, compared with 1.9 million square feet in the first quarter. 

• Direct vacancy fell four-tenths of a percentage point to 24.4%, while net absorption totaled approximately 585,000 square feet. 

• The market may also be on track for its first office tower groundbreaking in several years after Sidley Austin signed a lease for more than half of a proposed 45-story, 968,000-square-foot tower at 725 W. Randolph St. in the West Loop. This potential new construction marks a significant shift in market sentiment. 

• Speed to occupancy remains a priority for many tenants, with move-in-ready suites accounting for 36.7% of all leasing activity year-to-date. This segment has grown steadily in recent years as tenants seek alternatives to costly and time-consuming buildouts, increasing from 20.6% of leasing activity in 2023 to nearly 40% in 2025 and 2026.  

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