Office market conditions deteriorated in Chicago's central business district in the first quarter, with direct leasing activity hitting an anemic 1.1M SF, the lowest level since Q3 2020.
Net absorption in the CBD totaled negative 1.4M SF in Q1 2024, with more than 938K SF of negative net absorption attributed to Class A properties, according to a market report from Transwestern.
The direct vacancy rate in Chicago's CBD hit 21.2% in Q1, a 90 bps increase over the previous quarter and a 200 bps increase in a year-over-year comparison. The vacancy rate in Class A office buildings rose to 18.9%, while the combined vacancy rate for Class B and C offices in the CBD increased to 26.3%.
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