Figures

Midwest Office Figures Q1 2026

May 8, 2026 5 Minute Read

Quarterly net absorption remained negative in the Midwest, recording -507,345 sq. f.t in Q1. Notably, nine of the fourteen markets recorded positive absorption, however, strong negative movement in Minneapolis/St. Paul and Chicago outpaced the positive occupancy changes elsewhere.
Overall vacancy increased quarter-over-quarter by 20 basis points (bps) to 22.4%.
The overall average asking lease rate climbed $0.18 (60 bps) over the prior quarter to $28.81 per sq. ft. in Q1 2026.
At the close of first quarter the Midwest recorded 1.1 million sq. ft. of office space under active construction. The limited pipeline signifies the heightened cost of construction and caution by lenders/developers to bring additional product to market.
The Midwest markets posted 9.64 million sq. ft. of office leasing activity in Q1 2026 a decrease of 1.4 million sq. ft. (12.9%) over Q1 2025.