Figures

Chicago Downtown Office Figures Q4 2024

January 10, 2025 10 Minute Read

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  • The Central Business District (CBD) saw just over 150,000 SF of net negative absorption in the fourth quarter of 2024, nearly double the negative absorption seen last quarter. Consequently, 2024 recorded a negative net absorption of 1.6 million SF, which is the lowest annual absorption witnessed since 2021.
  • Despite the negative absorption, Q4 saw many tenants expanding their footprint. A majority of the negative absorption derived from tenants rightsizing their footprints, whether it was by exercising contraction options, making a deal with the landlord to give back unused space or opting to sublease space. 
  • Leasing volume for tenants over 10,000 SF is up nearly 26% from Q4 2023. The final quarter of the year boasted the three largest deals of the year, as well as the largest new lease signed in over three years.
  • Sublease availability sits at 6.4 million SF of sublease space in the market and continues to drop after peaking at 8 million SF in Q2 2023.
  • 919 W Fulton remains the only new building under construction, expected to deliver in 2025. Several redevelopment projects are underway as second-generation buildings stand to benefit from the lack of new inventory.