Despite high vacancy rates, the office markets in both downtown and suburban Chicago showed signs of positive momentum at the end of 2024.
A recent report by Bradford Allen revealed that the suburban Chicago office market had a vacancy rate of 24.6% at the end of 2024, slightly higher than its midyear rate of 24%. However, there was a slight increase in rents to $27.53 per square foot.
In downtown Chicago, there was also an increase in vacancy rates to a record high of 23.2% during the fourth quarter from its midyear rate of 22%. Gross asking rents remained unchanged from the third quarter at $42.85 per square foot. Leasing activity improved slightly with a total leased space area reaching up to approximately 2.4 million square feet during Q4 and around8 .2 million for all throughout year .
Neil Bouhan , senior managing director for research and communications at Bradford Allen stated that “the data shows that while it is still undergoing changes , there are indications pointing towards recovery and adaptation within the Chicago office market.” He further added that leasing activity remains stable in suburban areas due to built-out spaces and spec suites while Fulton Market continues to perform well with positive absorption rates as well as strong interest from potential tenants.
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The post highlights how despite high vacancies, both downtown and suburban offices markets showed signs
of improvement by late-2024 according
to Bradford Allen’s recent report.
Suburban vacancies rose slightly but so did rental prices,
while Downtown saw record-highs but no change
in rent prices.
Leasing picked up pace overall,
with Neil Bouhan stating optimism about the market’s recovery and adaptability.
Don’t miss out on Michael Brennan’s Lifetime Achievement Award at Connect Industrial Midwest 2025, where he will be interviewed by Kevin Brennan of Brennan Investment Group. Join us at Joe’s Live in Rosemont, IL on March 5th for this exclusive event!
