Suburban Chicago office market fundamentals a mixed bag, but overall tenant demand remains soft

Despite concerns surrounding economic uncertainty and weakened demand, favorable indicators were seen within the Suburban Chicago office market at the close of 2022. A handful of metrics improved over last year, among them a 35.0% increase in annual leasing volume, as well as a 70-basis point decline in availability. Furthermore, Suburban Chicago stood out as one of the few major U.S. markets where available sublease space declined in 2022. Still, overall availability across Suburban Chicago remains far above historical averages at 31.2%, while Class A availability closed the year at 34.2%, just below all-time highs. The market also witnessed the impending loss of a major tenant as e-commerce platform Zoroannounced plans to depart Buffalo Grove for Downtown, while Northbrook-based Allstate was reportedly considering relocating its headquarters to Chicago.

Read the full report