Monthly Archives: January 2026

Ten with Ben 034: Chicago Office Market Outlook: What to Watch in 2026

Ben Azulay sits down with Bradford Allen’s Neil Bouhan, senior vice president, research, for this episode of Ten with Ben to unpack what’s shaping Chicago’s office market as 2026 begins. The conversation highlights encouraging year-end signals, including improving leasing momentum and how vacancy trends are evolving.

They also discuss how shifting tenant priorities are influencing leasing decisions across the market, offering a clear, data-backed look at what’s driving activity right now and what to watch in the year ahead.

Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.

 

Bradford Allen Completes Penthouse Lease at 805 Third Ave. 

NEW YORK — Bradford Allen has completed a 31,494-square-foot lease at 805 Third Ave. for the South African Consulate, securing the penthouse of the Midtown office tower. 

The transaction was executed by Bradford Allen’s Glenn Isaacson, executive vice president, New York, and Tony Builder and Ava Beganovic, senior associates, working alongside Marc Horowitz, executive vice president and national director of leasing at Cohen Brothers Realty Corporation. Michael Goldman of Cresa represented the tenant.

“805 Third Ave. continues to attract tenants looking for high-quality, move-in-ready space in a prime Midtown location,” Isaacson said. “The penthouse offering, paired with access to a private outdoor terrace, aligned well with the consulate’s needs.” 

Cohen Brothers Realty Corporation is a New York-based owner, developer and operator with a long-standing presence across Manhattan, including a portfolio of office properties throughout Midtown.  

“We’re pleased to welcome the South African Consulate to 805 Third Ave.,” said Horowitz. “The lease reflects our ongoing commitment to maintaining the building as a reliable, well-positioned option for a wide range of users.” 

The consulate selected 805 Third Ave. for its efficient layout, limited build-out requirements and proximity to its existing Third Avenue location, allowing for a smooth transition with minimal disruption. 

Located in Midtown East, 805 Third Ave. offers convenient access to regional transportation, nearby dining and key landmarks including Grand Central Terminal, the Chrysler Building and Central Park. For more information about the property, visit bradfordallen.com. 

About Bradford Allen: 

Bradford Allen (BA) is a commercial real estate firm based in the heart of downtown Chicago. Founded in 2003 by Jeff Bernstein and Larry Elbaum as an office brokerage, the firm has grown into a vertically integrated commercial real estate company, offering a full array of services and expertise across multiple U.S. markets to entrepreneurial, corporate and not-for-profit clients, including strategy, marketing and transaction execution for occupiers, investors and owners. For more information, visit?bradfordallen.com

 

Year-End 2025 Suburban Office Market Report

Bradford Allen is pleased to share with you our latest office market report.

The second half of the year in the suburban office market:

  • Vacancy was 26.0%, up almost imperceptibly from 25.7% at the end of 2024, suggesting the market may be nearing an inflection point.
  • Direct net absorption in the second half of 2025 was nearly negative 300,000 square feet, bringing annual net absorption to negative 179,000 square feet, a significant improvement from the negative 1.3 million square feet of absorption in 2024.
  • Investment sales activity slowed in the second half of the year, with the year closing out at $188 million of transactions completed in 2025—nearly half the volume seen the year prior. The average price per square foot in these transactions was just $49.
  • It’s not all bad news for buildings in the suburbs—overall, tenants continue to recognize the operational advantages and cost efficiencies of well-located suburban assets, which continue to drive leasing velocity in quality properties and spec suites.

 

Q4/25 Downtown Chicago Office Market Report

Bradford Allen is pleased to share our latest office market reports.
This quarter in Chicago’s downtown office market:

  • Q4 2025 net absorption turned positive for the first time in nine quarters, recording 163,433 square feet of absorbed space, bringing the annual net absorption in the CBD to negative 2 million square feet and underscoring an uneven recovery despite improved quarterly performance.
  • Direct vacancy remains elevated, settling at 24.3% in the last quarter of the year, up a full percentage point from Q1 2025.
  • The average gross asking rates were steady at $41 per square foot.
  • Q4/25 activity highlighted a clear preference for move-in-ready spec suites, first-class amenities, and cutting-edge office technology—especially in locations with strong transit access. Nearly 40% of all completed transactions during 2025 were for move-in-ready spec suites.