Despite high vacancy rates, both the downtown and suburban Chicago office markets showed signs of positive momentum at the end of 2024.

According to a recent report by Bradford Allen, the suburban Chicago office vacancy rate was 24.6% at the end of 2024, slightly up from 24% during the first half of the year, but rents slightly rose to $27.53 per square foot.

The downtown vacancy rate rose to a new record high of 23.2% in the fourth quarter from 22% at midyear, and gross asking rents were unchanged from the third quarter at $42.85 per square foot. Leasing improved slightly, with 2.4 million square feet leased in the fourth quarter and 8.2 million square feet for all of 2024.

“As the data shows, the Chicago office market remains in transition, but there are bright spots pointing to recovery and adaptation,” said Neil Bouhan, senior managing director, research and communications, at Bradford Allen. “Suburban leasing activity is holding steady, driven by built-out spaces and spec suites, while Fulton Market downtown continues to outperform with positive absorption and strong tenant interest.”

Register Today to “Be in the Room” when Michael Brennan receives Connect CRE’s Lifetime Achievement Award and will participate in the Keynote Interview with Kevin Brennan, also of Brennan Investment Group. Join us at Connect Industrial Midwest 2025 on the afternoon of Wednesday, March 5, at Joe’s Live in Rosemont, IL, for this exclusive presentation!