This quarter in Chicago’s downtown office market:
- Leasing reached approximately 1.8 million square feet, the lowest quarterly volume since Q2/23, led by Morningstar’s 275,000-square-foot lease at the Thompson Center.
- Direct vacancy rose slightly to 25.0% from 24.4%, and net absorption was approximately negative 269,000 square feet as several large vacancies hit the market, including Boeing’s 150,000-square-foot vacancy at 100 N. Riverside Plaza. Year-to-date net absorption is approximately negative 398,000 square feet.
- More than half of Q3/26 property sales were earmarked for redevelopment or conversion. These properties could potentially remove nearly half a million square feet from CBD office inventory.
- Investment sales totaled $81 million in Q3/26, down from over $416 million in Q2/26, while year-to-date volume of over $849 million is up 67% compared with 2025.
- Move-in-ready suites accounted for 30.2% of all leasing year to date, more than double the 6.6% share in 2017.