The Chicago office sector continues to struggle, with vacancies rising and absorption remaining negative, according to the latest research from Transwestern.
In its second quarter Chicago CBD office report, Transwestern said that the vacancy rate in Chicago’s Central Business District climbed to a new high of 22.8% in the second quarter of 2025. The quarter also saw negative absorption of 541,722 square feet of office space in the city’s CBD.
That marks the eighth consecutive quarter in which Chicago’s CBD has seen negative net absorption in the office sector, Transwestern reported.
Office leasing activity in the CBD has slowed, too. Tenants signed just 35 confirmed leases totaling 15,000 square feet during the second quarter. That is down from 55 office leases signed in the CBD during the first quarter of the year.
The largest new lease of the quarter was Golub Capital’s direct lease of 205,450 square feet at 225 W. Randolph St. in the West Loop. Known as The Bell, this is a recently completed redevelopment of the 850,000-square-foot office tower originally built in 1967 for Illinois Bell.
Transwestern reported that four office buildings in the Chicago CBD were sold during the second quarter. The largest transaction was the 1.3-million-square-foot sale of the office property at 311 S. Wacker Drive, acquired by Kohan Retail Investment Group for $45 million, a decrease of 85% from its last sale price in 2014.
