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Report: Chicago Office Market Remains Steady as Inventory Declines
Chicago’s suburban office market remained largely unchanged during the first quarter of 2026, according to a recent report from Transwestern.
Reductions in obsolete suburban office inventory, which helped offset limited tenant demand, contributed to the direct vacant available rate remaining stable at 18.6% in the first quarter. Total availability, which includes all space being marketed, increased 10 basis points quarter-over-quarter to 25% but declined 80 basis points year-over-year.
Net absorption totaled 20,411 square feet in the first quarter. The Class A sector recorded 34,874 square feet of positive absorption, while the Class B and C sectors posted negative absorption of 14,463 square feet.
Chicago’s suburban office construction pipeline remained dormant, with no office buildings larger than 40,000 SF under construction. Since 2016, little office space has been delivered, with most development built to suit for owner occupancy. The largest lease deal signed in the first quarter was Inland Real Estate Companies’ long-term, 140,000-square-foot lease in Downers Grove.
