Class-B buildings are driving leasing activity in the Chicago suburban office market, according to the second quarter 2025 Metro Chicago Office Market Report from NAI Hiffman.
Class-B office properties in the suburbs recorded 535,000 square feet of positive absorption throughout the first six months of 2025, according to NAI Hiffman. These properties are outperforming Class-A suburban office space so far this year.
To access Hiffman’s report, click here.
During the second quarter, office leasing volume in the Chicago suburbs was split fairly evenly between Class-A (57.9%) and Class-B (44%) properties. NAI Hiffman says that this is a first in recent years.
Overall, the suburban Chicago office market logged negative 297,000 square feet of absorption in the second quarter. But year-to-date absorption in this slice of the market remained at a positive 313,000 square feet as of the end of the second quarter.
NAI Hiffman said, too, that Class-B properties with owners who have invested in them are performing well. There is a divergence in leasing activity between aging, neglected office buildings and those in which owners are spending money on improvements.
In another important trend, NAI Hiffman reported that conversions are helping to remove millions of square feet of outdated office space from the market. Examples include the former Sears headquarters and the Atrium Corporate Center in Rolling Meadows, Illinois.
Mid-size office product is proving resilient, too. NAI Hiffman said that assets in the 20,000- to 100,000-square-foot range continue to see steady leasing activity, often outperforming larger properties.
The Chicago suburban office vacancy rate as of the end of the second quarter stood at 26.7%. NAI Hiffman, though, said that momentum is building among landlords who are investing in spec suits, flexible layouts and amenities that support hybrid work.
