Chicago Downtown Office Figures Q4 2023

January 8, 2024 10 Minute Read

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  • The Central Business District (CBD) experienced just over 200,000 SF of negative net absorption in Q4 2023, bringing the year-to-date (YTD) absorption in the CBD to negative 192,801 SF. This is the second time the YTD absorption is negative in over a decade with the first time being in 2021, which saw a negative absorption of 2,119,574 SF.
  • Tenants are still flocking to more expensive, more efficient and higher quality space, while generally taking less space as they trade up in asset class. While Class A experienced a net positive absorption of nearly 140,000 SF in Q4, tenants moved out of 375,000 SF in Class B. The greatest example of this in Q4 was Heartland Alliance slashing half of its square footage at 208 S LaSalle in a move to 55 E Monroe.
  • Sublease availability remains high, with nearly 8.2 million SF of space listed. Sublease vacancy rose 10 basis points (bps) to 2.7% in Q4, which is up 20 bps from Q4 2022. OneDigital completed the largest sublease deal of the quarter, taking over 100,000 SF from Willis Tower’s namesake tenant, Willis Towers Watson. This was also the largest deal completed over 10,000 SF in Q4.
  • One building delivered in Q4: 732 W Randolph. This added 43,460 SF of new Class A product to the CBD’s total market inventory. CBRE also tracked one groundbreaking this quarter at 919 W Fulton, which added 409,000 SF to the under-construction pipeline.