Leasing momentum improves as the Downtown market finds its footing

Downtown Chicago’s office market closed 2025 on firmer ground, supported by improving leasing activity and early signs of stabilization. Availability ended the year at 29.5%, down modestly from both last quarter and a year ago, suggesting the pace of space givebacks has slowed. While availability remains elevated, tenant activity increased as occupiers became more decisive and executed renewals, relocations and selective expansions. Total leasing volume reached 10.3 million square feet (msf) in 2025, the strongest annual total since 2019 and a clear improvement from 2024, indicating a market that is gradually recalibrating after several years of disruption.

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