Q4 2023: Chicago Office Market Report

Chicago’s downtown office market ended 2023 with yet another surge in vacancy. Occupiers continue the trend of shedding square footage to be more efficient, pushing the vacancy rate in the CBD to 24.0 percent. Landlords hope 2024 will be the long-awaited reprieve from the precipitous increase in empty space with A, B, and C asset classes being impacted negatively.

The flow of tenants to quality spaces is continuing with the trophy class charging forward with ever-increasing demand for premier space. All submarkets continue to be adversely impacted as well, apart from Fulton Market, which continues to be the darling of the city, boasting new developments and a bustling atmosphere. Landlords throughout the city are being challenged to find creative transaction structures to renew or attract new tenants.

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