Suburban Chicago office fundamentals remain solid, positioning market for leasing rebound
Suburban Chicago's office market held its footing in the second quarter as inventory contracted by more than 5.0 million square feet (msf) from a year ago through demolitions, conversions and repositioning efforts. Despite this reduction in supply, overall availability held steady at 29.1%, a sign that excess space is still working its way through the market. Leasing activity totaled 1.5 msf, even with a year ago and slightly above the five-year quarterly average, snapping a three-quarter streak of below-trend activity. Year-to-date leasing likewise remained on pace with recent years, reflecting a market characterized by steady, needs-based decision-making rather than broad expansion.