**Downtown Chicago Office Vacancy Stabilizes as Leasing Momentum Builds**
Direct vacancies in Chicago’s downtown office market remained steady in the most recent quarter, while absorption showed significant improvement — key indicators that the central business district (CBD) is gradually regaining stability, according to a new report by Bradford Allen.
Led primarily by activity in the West Loop, approximately 1.8 million square feet of office leases were signed in the past three months. The CBD posted a direct vacancy rate of 24.4%, slightly down from the previous quarter’s record high. Importantly, net absorption improved to negative 173,000 square feet — a substantial recovery from the previous quarter’s negative 1.7 million square feet.
The West Loop submarket continues to drive leasing activity, benefiting from strong access to transit and an abundance of modern, amenity-rich office space. This area accounted for roughly 41% of all new leasing during the quarter.
“The latest data suggests signs of stabilization across Chicago’s downtown office landscape,” said Neil Bouhan, senior managing director of research at Bradford Allen. “With vacancies holding steady and leasing volume remaining strong, tenants are signaling greater confidence, hinting that recovery continues.”
These trends indicate a cautious yet encouraging path forward for the Chicago office market as it adapts to post-pandemic workforce shifts and evolving tenant priorities.
