Office Market Update — 2025 Mid-Year Chicago Suburban Report
Our team at CBIZ Gibraltar is always monitoring conditions across office markets – and there are several key insights that can benefit tenants leveraging the current landscape for economic advantage.
In the suburban Chicago market, leasing activity saw a slight uptick towards the second half of the year with tenant demand focused on well located, high-quality and amenity-rich assets. Notwithstanding, overall market vacancy exceeds 30%.
Class A and Trophy assets continue to lead market activity, with O’Hare and Oak Brook submarkets experiencing a tightening of large, premium office space supply. Class A and Trophy office buildings are maintaining asking rental rates and, while landlords are still offering concessions as incentives to secure tenants, have started to spread them out over a period of the full lease term, allowing landlords to preserve face rates.
On the opposite spectrum, older and dated buildings are being redeveloped or repurposed, with a strong focus on common areas and amenity updates.
Sublease availability remains low and continued its downward trajectory, dropping to 1.9% overall. The North market currently offers the largest volume of sublease options among the suburban submarkets, at 3.1%.
Spec suites and well-maintained second-generation office spaces in amenity-rich buildings will continue to excel in the suburban market, with Class A and Trophy buildings experiencing the highest level of activity.
At CBIZ Gibraltar, we are constantly developing innovative and strategic ways to better our results for our clients. With the ever-changing market around us, tenants need a proactive approach to negotiating, evaluating, and managing their real estate needs so they can put their focus on their business goals and objectives. Whether your real estate plans are immediate or far-off, we would like to get to know you and your office space needs.