Chicago Suburban office market report

Q1 2025

Suburban Chicago’s office market saw a strong start to 2025 with 2.0 msf of leasing activity in Q1, surpassing both pre-pandemic and recent post-COVID averages. The Eastern E/W Corridor and Northern submarkets led the way, posting 60.4% growth since 2020, fuelled by major deals like Fortune Brands’ new HQ. Average lease sizes also hit a five-year high, rising 32.6% YoY, driven by a surge of new leases.

2.0 msf

Total leasing activity in Q1 2025

Suburban Chicago office leasing activity in the first period of 2025 totaled 2.04 msf, reflecting a 2.4% increase compared to the pre-COVID quarterly average (2014–2019) and a 36.9% increase from the 2020-2024 quarterly average of 1.5 msf. Q1 saw notable leasing activity as major tenants finalized significant deals. Fortune Brands Innovations signed 392k sf worth of new leases at 1 Horizon Way, leasing two full buildings for a newly consolidated HQ, while Adtalem Global Education leased nearly 65k sf at 2601 Navistar Dr.

60.4%

Leasing activity growth in Eastern E/W and North from 2020

Across the suburban submarkets, the Eastern E/W Corridor and the Northern suburbs have experienced significant growth since 2020. Leasing activity in these two submarkets has increased by 60.4%, whereas the Northwest, O’Hare, and Western E/W corridor experienced only 16.8% growth in the same time frame. This trend seems primed to continue in 2025 with significant leases in the North for Fortune Brands and in the Eastern E/W with Ryerson.

32.6%

Increase in average lease size vs. 2024

The first period of 2025 has seen average lease sizes grow 11.9% above pre-pandemic sizes and 32.6% from last year. This growth was driven by almost entirely by new leases, which rose year-over-year by 40.9%, offsetting the (28.2%) decrease in average renewal size. Additionally, average lease sizes through the first quarter of 2025 are at their largest point in the past five years, 2,154 sf or 6.5% greater than in 2023.

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