Chicago Downtown Office Figures Q1 2023

April 7, 2023 10 Minute Read

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  • The Central Business District (CBD) experienced its first quarter of negative absorption since Q3 2021, significantly down from last quarter’s positive net absorption. It stands at a negative 102,916 SF at the close of the first quarter of 2023.
  • Total CBD leasing volume in Q1 for deals over 10,000 SF was 885,456 SF, down 33% from Q1 2022. The Central Loop led leasing activity at 35% of all deals completed this quarter, with nearly half of the submarket’s leased SF coming from Enova International’s renewal at 175 W Jackson Blvd. The West Loop followed closely behind, with UL Solutions signing a new lease for nearly 40,000 SF at 155 N Wacker Dr.
  • The largest contributors to negative net absorption were: Convene vacating 48,863 SF at 131 S Dearborn St, Marketing Werks vacating 44,000 SF at 130 E Randolph St and Regus vacating 28,000 SF at 30 S Wacker Dr.
  • Q1 experienced almost 1.6M SF (listings over 10,000 SF) of new sublease space added to the market, the highest in a quarter, exceeding the pandemic peak of 1.2M SF in Q2 2020.
  • One building broke ground this quarter, adding 45,000 SF to the under-construction totals.