Office

Chicago Q3 2025 Quarterly Report

Michael Morrone November 17 < 1

Key Highlights:

  • The pace of Class A vacancy increases slowed
    Direct vacancy for the Class A portion of the CBD was 20.41 percent; remaining relatively unchanged from mid-year’s 20.37 percent.
  • Class A leasing gains
    There was 1,785,561 square feet of Class A leasing activity, an 8.9 percent year-over-year increase from 2024’s third quarter.
  • West Loop leasing activity thrived
    Four of the top five deals on the quarter signed in the West Loop; as well as seven of the top 10 deals.
  • Flight to quality endured
    Class B move-outs accounted for 82.9 percent of the quarter’s direct net absorption figure (-292,435 square feet).
  • Capital markets continued to thaw
    Four building sales were recorded in the third quarter, highlighted by the $27.65 million ($42.69 per square foot) sale of 2 N Riverside Plz in the West Loop.

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