Chicago CBD office market report

Chicago CBD office leasing activity reached roughly 1.9 msf in Q2 2026, down about 12% from Q2 2025 but in line with the post-pandemic Q2 average and up modestly from Q1. The steadier pace suggests leasing demand is beginning to stabilize.

Notable Q2 leasing activity includes Sidley Austin’s roughly 550k sf at 725 W Randolph, Deloitte’s 266k sf at 111 S Wacker, and Vedder Price’s 163k sf at 222 N LaSalle.

Chicago’s CBD absorption improved in Q2 2026, narrowing to just -112k SF of negative absorption, down from -757k sf in Q1. The sharp QoQ improvement points to early signs of stabilization, even as the CBD remains in cumulative negative territory at -869k sf YTD.

Q2's improvement was broad-based, with Trophy assets posting positive absorption for a second straight quarter and Class B/C turning positive after a weak start to the year. Class A remained the main source of drag, though its Q2 losses were far smaller than in Q1.

Even with availability near record highs, the CBD remains an incredibly competitive market for tenants seeking large blocks of space. Only 22% of the CBD’s office product can accommodate a contiguous block of 50k sf, shrinking to 11.7% at 100k sf.

When accounting for a preference towards quality space, the options get even slimmer. Because of the city’s tight supply, we find landlords proactively managing stacking plans years in advance to capitalize on demand and create prolonged flexibility across their assets.