Leasing activity remains stunted across Downtown Chicago despite some improving indicators

Leasing volumes in Downtown Chicago totaled 2.0 million square feet (msf) in Q2 2023, marking a 9.5% increase from Q1 but falling 17.9% below the same period in 2022. Touring activity reportedly percolated among active tenants in the market, and Downtown Chicago workers returned to the office at levels not witnessed in three years. Despite these positive signals, corresponding improvement was not seen in deal volume. Among the largest transactions this period, several tenants grew their overall occupancies, including Antares Capital who expanded by 25% in its 88,000 square foot (sf) relocation to 320 South Canal Street. However, Aon’s extension at 200 East Randolph Street included a 25% reduction from its prior footprint, to 300,000 sf.

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