Downtown market continues to stabilize as leasing and fundamentals align

Downtown Chicago’s office market continued to stabilize in early 2026, with modest but meaningful improvements in availability and pricing. Availability declined to 29.3%, down 60 basis points (bps) year over year, reflecting gradual tightening as space reductions moderate and leasing activity absorbs select blocks. Asking rents rose to $47.65 per square foot (psf), up 4.4% from a year ago, while Class A rents increased to $55.51 psf, both at all-time highs. While Q1 leasing totaled 2.0 million square feet (msf), tenant demand remains robust beneath the surface, with many occupiers evaluating options and advancing decisions following renewed commitments to in-office work.

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