**Demand for Quality Fuels Chicago Office Leasing Surge**
A recent report from Savills highlights a growing appetite for premium office space in Chicago, reflecting a strong recovery across the market. Leasing activity continues to climb, with many transactions involving new leases or space expansions—signs of renewed optimism among major occupiers.
At the start of 2025, the Downtown Chicago office market saw a notable uptick, with leasing volumes exceeding 2.8 million square feet in the first quarter alone. That marks an impressive 43.4% increase compared to the same period last year. Overall availability also rose by 130 basis points to 29.9%, though Class A office space remained more resilient, with availability ticking up just 100 basis points to reach 24.6%.
Among the ten largest lease deals of the quarter, half involved companies remaining in place, while the other half represented relocations or consolidations. The ongoing “flight to quality” trend remains a defining market dynamic, with modern, amenity-rich Class A properties continuing to outperform. In contrast, older office buildings lacking contemporary features face mounting financial pressures as tenants demand higher standards.
