Chicago suburban office market report
Q3 2025
Suburban Chicago’s office market’s leasing pace fell behind 2024 with just 4.2 msf year-to-date (YTD), driven largely by the North and Eastern E/W Corridor submarkets. While leasing activity declined, high-quality products saw positive absorption, which offset Class B move-outs, suggesting a near trough in post-pandemic suburban demand. Additionally, with diminished activity and continued renewal rightsizing, overall lease sizing has fallen, but new deals have grown by 11% YoY.
Total leasing activity in 2025 YTD
Suburban Chicago office leasing activity totaled 4.2 million square feet (msf) through Q3 2025, reflecting a 11% decrease compared to YTD 2024. The existing activity in 2025 has been driven by the North and Eastern E/W Corridor submarkets at 1.2 msf and 960k sf, respectively. Significant deals in Q3 included a 71k sf renewal by Arris Solutions at 2400 Ogden Ave and Batory Foods at 10255 W Higgins for 25k sf.
Net absorption in Class A assets in 2025 YTD
While leasing activity has declined in the Chicago Suburbs, absorption among the highest quality assets in 2025 is nearly even, with Classes A+ and A accounting for +507k sf, and B reflecting -519k sf. This suggests a nearing trough and inflection point in demand. Additionally, the Northwest submarket has driven positive absorption metrics, offsetting the four negative submarkets to reach -12k sf total YTD.
Increase in average new lease size from 2024
Overall average lease sf has seen three consecutive periods of growth, moving towards pre-pandemic norms. This is due to new lease sizing growing 11% from pre-pandemic levels and 4% from 2024 alone. However, renewals in the same time frame are shunted, down 43% from 2019 and 14% from 2024 alone, inhibiting recovery as tenants continue to rightsize their footprints.
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