Office market at a crossroads as Class A demand sustains, while elsewhere empty space mounts

While many of Downtown Chicago’s top-level metrics held steady at the midpoint of 2025, the impact of fundamentally altered office market dynamics continued to be felt. Occupiers exhibited an unambiguous preference for trophy and well-located Class A properties, while older and less updated properties faced uncertain financial prospects with foreclosures and returning keys to lenders a persistent reality for some owners. Like Q1 2025, nine of the 10 largest leases were completed in Class A buildings this period. While quarterly leasing activity was lower compared to the two preceding periods, occupiers remained active in the market and deal volume topped the market’s long-term average.

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