Q1 Report Shows Chicago Office Leasing Remains Muted

According to the latest report released by Transwestern, negative absorption reached 1.4 million square feet in the Chicago CBD in the first quarter of 2024.

This escalated the direct vacancy rate to a record high of 21.2%. Leasing activity remained depressed, and there were only two investment sales. Despite the continued lull, there were bright spots, such as JP Morgan Chase’s commitment to staying at the company’s 1.9 million-square-foot tower in the Central Loop. Chase will also be investing in a major redevelopment of the tower, which it owns.

The three largest new deals signed in the first quarter of 2024 were all at 300 N. LaSalle Street in River North and included law firm Crowell & Moring leasing 48,966 square feet. “Leasing activity remains well below pre-pandemic norms, which means more negative absorption can be expected in the future. Vacancy rates are also expected to remain high but may begin to fall as more buildings are demolished and replaced with data centers and other industrial uses.”

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