Chicago Suburban Office Insights

Chicago suburban office market trends and insights

The suburban Chicago office market remains one of the Midwest's most important business hubs, offering a diverse mix of office environments across established suburban submarkets. As workplace strategies continue to evolve, organizations are reevaluating how location, building quality, amenities, and flexibility support their long-term objectives.

Whether you're evaluating a lease renewal, considering a relocation, or simply monitoring market conditions, this resource provides access to the latest market insights, research, and local expertise from Avison Young's Chicago office specialists.Show more lines

2025 Q2 Office Market Stats

Suburban Chicago’s FY 2025 results showed a continued trend of slowing momentum as tenants right-sized in oversaturated markets. Leasing activity fell significantly after a stellar Q1, and Class A positive absorption was nullified by second-tier Class B product. While renewal sizing continued to fall, new leases have grown. In the wake of a tough office market across Chicago, the suburbs will continue to carve out utility in aging assets anchored in creating desirable experiences for their workforce.

5.3 msf

Total leasing activity in 2025

Suburban Chicago office leasing activity totaled 5.3 million square feet (msf) in FY 2025, reflecting a 21% decrease compared to FY 2024. The existing activity in 2025 has been driven by the northern submarkets and Eastern E/W Corridor submarket, totaling nearly 4 msf. Significant movers in share of leasing activity include the North at +3% and Western E/W at -3% from FY 2024.

+365k sf

Net absorption in Class A assets in 2025

While leasing activity has declined in the Chicago Suburbs, absorption among high-quality assets in 2025 has remained positive. Absorption has corrected its course after a dismal 2024 performance (-2.1 msf) and now sits at just -288k sf through FY 2025. Additionally, the Northwest was the only submarket to render positive absorption at +627k sf. Western E/W and North closely followed with just -4 and -91k sf, respectively.

Increase in average new lease size from 2024

Average new lease sf has seen three consecutive periods of growth and sits just 2% below pre-pandemic norms. However, renewals in the same time frame have contracted, down 46% from 2019 and 18% from 2024 alone, inhibiting recovery as tenants continue to rightsize their footprints. Average lease sizes have converged, with both renewals and new leases capturing 27k sf in FY 2025.

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The suburban Chicago office market continues to evolve as occupiers reassess workplace strategies, space utilization, and employee experience priorities. Across the region, organizations are balancing efficiency with flexibility while evaluating how office environments support recruitment, retention, and long-term business objectives.

While market conditions vary by submarket, tenant demand generally remains concentrated in properties that offer modern amenities, convenient access to transportation, and workplace experiences that help organizations attract talent. As a result, well-positioned assets often compete differently than older properties that may require reinvestment or repositioning to remain competitive.

Evolving workplace strategies

Many organizations continue to evaluate the role of the office within broader workplace and portfolio strategies. Decisions around lease renewals, relocations, consolidations, and expansions are increasingly influenced by operational goals, workforce preferences, and long-term flexibility requirements.

Employers seeking to optimize their real estate footprint are often prioritizing locations that support collaboration, employee engagement, and business continuity while balancing occupancy costs and utilization needs.

Flight to quality remains a defining theme

Across many suburban office markets, demand tends to favor high-quality office environments that can support evolving workplace expectations. Buildings that offer updated amenities, flexible configurations, and desirable locations are often better positioned to attract and retain tenants.

Property owners continue to explore strategies that differentiate their assets through tenant experience, building improvements, and operational efficiencies.

Understanding local market dynamics

The Chicago suburbs encompass a diverse collection of office submarkets, each with distinct characteristics, tenant profiles, and development patterns. Market activity can vary significantly based on industry concentration, transportation access, building quality, and local economic conditions.

Organizations evaluating office space opportunities benefit from market-specific guidance that considers both current conditions and longer-term trends affecting occupancy decisions.

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Whether you are evaluating a lease renewal, exploring relocation options, or seeking insights into current market conditions, Avison Young's Chicago office specialists can help you navigate opportunities across the suburban market.