July 2025
Hiffman Releases Q2 2025 Office Market Report
NAI Hiffman is pleased to present the Q2 2025 Office Market Report, an in-depth look at statistics for the Chicago metropolitan office real estate markets.
Chicago’s Suburban Office Market in Transition: Signs of Stabilization Amid Headwinds
- Chicago’s suburban office market softened during the first half of 2025 as multiple factors continue to impact the market, including reduced demand, tighter restrictions on capital, and persistent economic uncertainty.
- Net absorption totaled -297,461 square feet during the second quarter.
- Vacancy rose slightly to 26.7%, compared to 26.1% one year ago.
- New leasing activity reached 1,282,035 square feet during the second quarter, down from 1,543,768 square feet in Q2 2024.
Downtown’s Office Market Continues to Soften in 2025
- Chicago’s CBD office saw negative absorption this quarter with -1,535,319 square feet of absorption.
- Overall vacancy continued to rise, reaching 24.6%, a new historical high.
- The downtown market registered 1.7 million square feet of new leasing activity during the second quarter, down 19.9% year-over-year.
Contact Us
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.
