Figures

Midwest Office Figures Q2 2025

Class A Leasing Activity Momentum Fuels Positive Absorption

July 21, 2025 5 Minute Read

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‒In Q2 2025 net absorption was 191,378 sq. ft. A decrease from the 393,226 sq. ft. of net absorption in Q1 2025. Although muted, positive absorption is still welcome news, after six quarters of consecutive negative net absorption from Q2 2023 to Q3 2024.
‒After a brief contraction in Q1, overall vacancy increased by 10 bps (basis points) to 21.8% in Q2 2025.
‒Asking rates decreased for the second quarter in a row, decreasing by $0.08 to $28.46 per sq. ft.
‒Construction totals continue to be near record lows as both developers and banks remain cautious to bring any additional office product to the market that does not already have significant pre-leasing in place. Despite these headwinds, total construction increased by 45,725 sq. ft. to 2.5 million sq. ft. under construction in the Midwest.
‒The Midwest markets posted 8.83 million sq. ft. of office leasing activity in Q2 2025, 56.9% of which was new leasing activity.