Key Highlights:
- Flight-to-Quality Dominates
The “flight-to-quality” trend has intensified post-pandemic, with tenants flocking to the newest, best-located properties — especially within Stream’s defined Tier I Class A inventory, which boasts a low 13.5% vacancy rate. - Large Block Availability is Shrinking
Only nine available blocks over 100,000 SF remain in Tier I buildings across the CBD — and just five of those are in high-rise settings. This scarcity is creating urgency and competition among top-tier tenants. - Tier II Assets Gaining Momentum
With Trophy space tightening, well-located Tier II Class A buildings (primarily in the West Loop) are seeing increased attention as viable alternatives for space upgrades. - Limited Development
With only one new office development in Fulton Market and two major repositioning projects in The Loop, Class A vacancy should tighten, as the CBD’s next major development cycle likely will not commence until 2029 at the earliest. - Leasing Activity Accelerates
Leasing activity (including renewals) increased 22.4 percent year-over-year.