A recent report from Savills shows that demand for high-quality office space in Chicago continues to grow. Leasing activity is increasing, and a significant portion of deals reflect new leases or expansions, indicating positivity among major occupiers.
At the start of 2025, the Downtown Chicago office market observed heightened leasing volumes, with more than 2.8 million square feet transacted. Leasing in the first quarter was up 43.4% over a year ago. In the first quarter, overall availing rose 130 basis points to 29.9%, while Class A availability growth was less pronounced, up 100 basis points to 24.6%.
There was an even split among the ten largest lease transactions this quarter, between companies staying in place and firms relocating or consolidating in new locations. The trend of flight-to-quality remains evident, with Class A properties performing stronger while older, less-amenitized properties face financial challenges.
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