Key Highlights:
- Direct Vacancy Declined Modestly
Direct vacancy in the CBD was 24.66 percent, decreasing nine basis points quarter-over-quarter. Class A vacancy in the CBD was 21.01 percent at year-end. - Negative Direct Net Absorption Persists
Full-year 2025 direct net absorption was -1,832,436 square feet; 57.8 percent of these occupancy decreases occurred in the Class B portion of the market. - Class A Leasing Gains
Led by Stream’s long-term lease extension of USG Corporation at 550 W Adams St, there was 1,862,582 square feet of Class A leasing activity, a 4.3 percent year-over-year increase from 2025’s third quarter figure. - West Loop Leads Leasing Activity
The top four leases signed in the fourth quarter were in the West Loop; as well as six of the top 10. - Capital Markets Activity Accelerated
Concentrated in the West Loop, nine building sales or transfers were recorded within Stream’s tracked CBD office inventory. For buildings that had previously traded before Covid, these fourth quarter sales traded at significant discounts, demonstrating a market in transition as investors return to the office asset type.