April 2025
Hiffman Releases Q1 2025 Office Market Report
NAI Hiffman is pleased to present the Q1 2025 Office Market Report, an in-depth look at statistics for the Chicago metropolitan office real estate markets.
Chicago’s Suburban Office Sector Sees Promising Start to 2025
- Chicago’s suburban office market entered 2025 with renewed momentum, showing encouraging signs of stabilization after a challenging year. Net absorption turned positive for the first time in over a year, vacancy rates declined, and Class A buildings began to see the payoff from last year’s leasing activity.
- Net absorption totaled 216,352 square feet during the first quarter.
- Vacancy declined from historical highs to 26.3%, compared to 26.0% one year ago.
- New leasing activity reached 1,500,385 square feet during the first quarter, down from 1,642,727 square feet in Q1 2024.
Signs of Life as CBD Sees Positive Absorption and Decreased Vacancy
- Chicago’s CBD office posted positive absorption this quarter with 306,844 square feet of absorption.
- Overall vacancy declined, interrupting ten quarters of rising vacancy.
- The downtown market registered 1.6 million square feet of new leasing activity during the first quarter, down 16.9% year-over-year.
Contact Us
Nick Schlanger
Director of Research Services
630-691-0600
nschlanger@hiffman.com
David Mathis
Research Analyst
630-389-8922
dmathis@hiffman.com
About NAI Hiffman:
NAI Hiffman is one of the largest independent commercial real estate services firms in the US, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, property management, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property solutions division, which provides property management, project services, and property accounting services across the country. NAI Hiffman | Hiffman National is an award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.
About Hiffman National:
Hiffman National is one of the US’s largest independent commercial real estate property management and advisory firms, providing institutional and private clients exceptional customized solutions for property management, facility management, advisory services, accounting, lease administration, lender services, project management, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally bestowed Top Workplace, and recognized CRE award winner, Hiffman National is headquartered in suburban Chicago, with more than 250 employees nationally and an additional six hub locations and 25 satellite offices across North America.
