The direct vacancy rate for the most desirable office space in Chicago’s CBD stood at 7.9% as of the end of the second quarter. It’s more proof that the flight-to-quality is still a reality in the office sector: The broader Chicago CBD office market was saddled with a much higher 22.2% direct vacancy rate at the same time.
That’s the key finding from Transwestern‘s second-quarter 2025 Chicago Office Market Index.
This index is made up of the last 20 Class-A office buildings of more than 300,000 square feet built in Chicago’s Central Business District. This set of buildings contains some of the city’s most desirable office space, the type of space that will most appeal to tenants looking for high-quality offices with modern amenities.
Transwestern says that these properties account for about 19.7 million square feet, about 12.5% of the total office inventory in the city’s CBD.
As the lower vacancy rate in these properties shows, newer office buildings in the heart of Chicago are drawing tenants away from older properties.
But is new high-quality, Class-A office space being added to the Chicago CBD? According to Transwestern’s report, not really. Transwestern says that the only office property currently under construction in the Chicago CBD is 919 W. Fulton St., which will be added to the company’s Chicago Office Market Index once it is complete. This future 411,202-square-foot building is 47% pre-leased. Anchor tenant Harrison Street has committed to fill 112,000 square feet.
There is some space available for tenants, though, in Transwestern’s market index properties. Transwestern reported that there are four blocks of direct space greater than 100,000 square feet available. Two of the largest blocks are the 201,000-square-foot and 124,791-square-foot spaces left vacant by Kirkland & Ellis at 300 N. LaSalle St. when that company moved to Salesforce Tower.
There is also a 131,029-square-foot block of space available at 320 S. Canal St.
The newest addition to Transwestern’s index came online in the second quarter of 2024, 360 N. Green St. This property has a 117,828-square-foot block of available direct space on the market.
The largest new lease signed at a building in Transwestern’s index in the second quarter was Citadel’s 56,970-square-foot lease at 353 N. Clark St. Baker Tilly leased 25,000 square feet and John Deer expanded by 17,000 square feet at 800 W. Fulton Market.
