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April 2024

Hiffman Releases First Quarter 2024 Office Market Report

NAI Hiffman is pleased to present the First Quarter 2024 Office Market Report, in-depth looks at statistics for the Chicago metropolitan office real estate markets.

Chicago’s Suburban Office Faces Challenging Start to 2024

  • Chicago’s suburban real estate market softened during 2024 as multiple factors came to a head, including reduced demand, tighter restrictions on available capital, and persistent economic uncertainty.
  • Net absorption totaled -439,116 square feet during the first quarter.
  • Vacancy reached an all-time high at 26.8%, up from 25.5% one year ago.
  • The suburban office market registered 1.1 million square feet of new leasing activity during the first quarter.

Downtown’s Office Market Continues to Soften in 2024

  • Vacancy continues to rise to new cyclical highs as landlords have struggled to backfill large blocks of space amid tenant relocations and contractions within the market.
  • Chicago’s CBD office market continued to soften during the first quarter with -828,647 square feet of absorption.
  • Overall vacancy continues to tick up, hitting a new cyclical high of 22.5% during the first quarter.
  • The downtown market registered 1.2 million square feet of new leasing activity during the first quarter of the year, down 42.0% from the previous quarter and the lowest number the market has seen since Q4 2020.
Detailed statistics and commentary are available in the First Quarter 2024 Office Market Report; click here to access the download.
Detailed quarterly submarket reports will be available in the coming weeks.

Contact Us
For further information regarding the content of this market report, please contact:

Nick Schlanger
Research Director
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.


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