July 2026
Hiffman Releases Q2 2026 Office and Industrial Market Reports
NAI Hiffman is pleased to present the Q2 2026 office and industrial market reports, our firm’s in-depth look at statistics for the Chicago metropolitan commercial real estate markets.
OFFICE: Suburban Office Sees Clear Skies Amid Headwinds
- Leasing activity registered 1.1 million square feet during Q2 2026, with Class B leasing making up 39.4% of that total.
- The first quarter saw net absorption reach 605,806 square feet, due primarily to strong performance in Class A properties.
- Future success will favor landlords and investors who remain agile and responsive to tenant expectations. The performance divide between upgraded, well-managed properties and legacy assets is becoming more pronounced.
Downtown Office
- Chicago’s CBD office market stunned during the first quarter with 1,088,335 square feet of absorption, driven by strong new leasing and a reduction in sublease vacancy, particularly in Class A spaces.
- Overall vacancy dropped to 24.9% during the second quarter, falling from historical highs as tenants returned to take occupancy downtown.
- The downtown market registered 1.3 million square feet of new leasing activity during the second quarter, with Class A making up 74.5% of all new leases.
INDUSTRIAL: Vacancy Improves as Development Activity is on the Rise
Although demand for large-format industrial facilities has softened over the past two years, tenant interest remains solid for modern, well-located properties offering access to major interstates, rail infrastructure, and nearby population centers.
- A flight-to-quality approach remains as occupier demand increases for newer, efficient facilities and developers are catering to these responding with increased speculative construction.
- Twenty-one new speculative construction projects broke ground in Q2, indicating the strong demand for modern, Class A industrial product.
- Leading occupiers of industrial real estate continue to be 3PL providers, manufacturers, and food processing companies. Healthy demand is predicted to continue throughout the second half of 2026.
Contact Us
Denes Juhasz
Director of Research
630-693-0645
djuhasz@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.
