Figures

Midwest U.S. Office Figures Q4 2025

Prime Occupancy Peaks Causing Spillover to Non-Prime Class A Office

January 27, 2026 5 Minute Read

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‒In Q4 2025 net absorption was -85,530 sq. ft., a decrease from the 187,464 sq. ft. in Q3 2025.
‒Overall vacancy increased by 10 basis points (bps) this quarter to 22.1%.
‒Asking rates decreased in the fourth quarter by $0.06 to $28.63 per sq. ft.
‒Construction totals remain near record lows as both developers and banks stay cautious to bring any additional office product to the market that does not already have significant pre-leasing in place. In the fourth quarter, 1.2 million sq. ft. of product was delivered, the most since Q2 2024.
‒The Midwest markets posted 8.8 million sq. ft. of office leasing activity in Q4 2025, 58% of which was new leasing activity.