Office Trends Shaping 2026 —Suburban Market Showing Mixed Signals as Vacancy Challenges Persist
The suburban office market continues to show mixed signals as companies reassess workplace strategies and long-term office needs heading further into 2026.
While portions of the Chicago suburban office market are seeing positive absorption and renewed leasing activity, recovery remains uneven and vacancy rates continue to stay elevated across many submarkets. Companies relocating or upgrading space are helping drive activity, but demand has not returned fast enough to materially reduce overall vacancy.
As a follow-on in our Office Market Drivers & Trends Shaping 2026: Top Priorities for Today’s Tenants series, we break down the key trends influencing office strategy this year — and in this installment, we focus on trends shaping the suburban sub-markets.
Recovery Remains Slow and Uneven
Tenant priorities continue to shift as organizations focus more heavily on flexibility, employee experience, and office environments that better support hybrid work models. As a result, newer and upgraded buildings are generally outperforming older properties that have struggled to adapt to changing tenant expectations. Although some suburban submarkets are stabilizing, elevated vacancy remains a defining challenge across much of the market.
Spec Suites Continue to Perform
One area of continued demand is spec suites — pre-built, move-in-ready office spaces that allow tenants to occupy space quickly with lower upfront investment.
In many suburban locations, these suites offer attractive economics and increased negotiating leverage for tenants evaluating relocation or expansion opportunities. However, accessibility, surrounding amenities, commute patterns, and alignment with employee expectations remain critical factors in decision-making.
Landlords Continue Facing Pressure
Landlords remain under pressure to compete for a limited pool of active tenants. Many owners will likely need to offer increased concessions, flexible lease structures, or repositioning strategies to attract and retain occupancy in an increasingly competitive environment.
Outlook for 2026
Despite some encouraging signs, the suburban office market is expected to remain soft throughout 2026 and likely beyond. For tenants, however, the current environment still presents opportunity.
Watch this video for additional perspective from our team, and stay tuned for the next installment in our series as we continue unpacking the trends shaping tenant strategy in 2026.