Chicago CBD:
The 3,000-5,000 SF Segment
Chicago’s CBD office market supports users of all sizes, from multi-floor corporate headquarters to small partnerships. In our recent experience, space in the 3,000- to 5,000-square-foot range has become increasingly competitive, particularly in quality buildings and desirable locations. The headline metrics warrant a closer look. Total leased square footage in the 3,000- to 5,000-square-foot segment has increased every year since 2021, from 609,000 square feet to 686,000 square feet in 2025. Average time on market has also risen over the same period, from roughly 20 months in 2021 to 29 months in 2025, largely because obsolete space remains available for extended periods, skewing the average upward.Roughly 90% of deals in this segment were direct leases, and 90% were new leases — not subleases or renewals. Tenants in this size range aren’t simply renewing in place or occupying second-generation sublease space; they’re actively entering the market and signing new direct leases.
When measured as a share of total CBD leasing activity, the 3,000- to 5,000-square-foot segment accounted for 18.5% of all deals in 2021, climbed to 21% in 2024, and settled at roughly 20% in 2025. Absolute deal volume remained flat at 158 transactions from 2021 through 2023 before increasing to 165 in 2024 and 172 in 2025. As a result, early share gains were driven partly by contraction elsewhere in the CBD. Even so, the segment has consistently outperformed the broader market on a relative basis throughout the post-pandemic period. Average time on market across the full post-2016 dataset sits at roughly 25 months, and the trend has moved upward in recent years. The aggregate figure obscures a clear bifurcation: 40% of suites in this segment leased within 10 months, while 17% sat on the market for more than 40 months. The long tail of slow-moving inventory is driving the average and extending marketing times.
Performance varies meaningfully by class. Class B has been the most consistently active across every time-on-market bucket and carries the strongest pricing depth in the segment, with 130 deals at $25 to $30 per square foot, 125 at $30 to $35 per square foot, and 87 at $35 to $40 per square foot — more Class B deals completed above $30 per square foot than in Class A. Class A shows comparable depth in the $25 to $30 per square foot band, with 157 deals, and meaningful activity at rents above $30 per square foot. Class C is bifurcated, with 47 deals below $10 per square foot and 36 above $45 per square foot, with limited activity in between. Much of the dead-inventory tail visible in the aggregate time-on-market data sits in Class C.
Taken together, the data points to rising leasing volume since 2021, a growing share of a contracting CBD market, fast-moving quality product alongside a defined tail of slow-moving inventory, pricing strength in Class A and Class B properties, and a deal profile dominated by new direct leases. In quality buildings and desirable locations, the 3,000- to 5,000-square-foot segment remains one of the tightest areas of the Chicago CBD office market.
SENIOR VICE PRESIDENT
NEIL BOUHAN
Neil leads the firm’s research team. In addition to producing the flagship quarterly market reports and other thought leadership, BA Research spearheads diverse research initiatives to support acquisitions and operations teams across segments and geographies. Neil has over 15 years of experience in various research and communications roles and holds degrees from Johns Hopkins School of Advanced International Studies (MA) and the University of Chicago (AB).
SENIOR ANALYST
MORGAN SULLIVAN
Morgan joined Bradford Allen in 2025 as a senior research analyst, supporting quarterly market analysis, thought leadership, content creation, and market surveillance. Her expertise in commercial real estate research supports BA Research’s operational efficiency and contributes to the development of scalable research processes and procedures.
Prior to joining Bradford Allen, Morgan spent seven years at CBRE, including four years focused on the Chicago office market as a research analyst. In that role, she spearheaded quarterly market reporting, worked closely with marketing and office brokerage professionals on business development and pursuits, and served as the team’s main point of contact for ad hoc requests. Before joining CBRE Research, Morgan spent three years as a client services coordinator, providing marketing and administrative support for one of CBRE’s top-grossing retail teams. She was awarded the CBRE Chicago Rising Star award in 2024.
Outside of work, Morgan enjoys spending time with her fiancé, Jae, and their two cats, Magnolia and Phyllis. She is an avid country and western music fan, often returning to the Stockyards of Fort Worth to two-step with her sister and parents. Morgan graduated from the University of North Texas in 2017 and has spent the better part of the past decade learning to weather Chicago winters.
ANALYST
MILES KOZLOWSKI
Miles joined Bradford Allen in 2025 as a research analyst, supporting the Brokerage, Acquisitions, Asset Management, and Development teams with market analysis, data management, demographic research, site selection, prospecting, and market surveillance.
A recent graduate of the University of Wisconsin–Madison, Miles holds a Bachelor of Science degree in data science. He has also completed coursework in real estate finance and gained hands-on experience through internships at Stream Realty Partners and Transwestern.
Outside of work, Miles enjoys dining out with friends, playing Chicago-style sports such as 16-inch softball and kickball, attending concerts and music festivals, and golfing.