October 2026
Hiffman Releases Q3 2026 Office and Industrial Market Reports
NAI Hiffman is pleased to present the Q3 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 Q3 2026, with Class B leasing making up 40.2% of that total.
- Net absorption totaled -45,961 square feet, a reversal from the 98,884 square feet of positive absorption recorded during the same period last year, while overall vacancy held steady at 26.7%.
- 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 saw absorption fall this quarter with 180,634 square feet of negative absorption.
- Overall vacancy ticked up to 25.5% during the third quarter, a slight increase from the 24.9% vacancy rate recorded at midyear.
- The downtown market registered 1.5 million square feet of new leasing activity during the third quarter, down 25% year-over-year.
INDUSTRIAL: Elevated New Leasing Deal Velocity Saturates the Chicago Market
- Chicago’s industrial market vacancy rate holds steady at 5.8% as speculative completions delivered, and several tenant movements took place between July and September.
- New leasing activity, consisting of new leases, expansions and subleases climbed to 17.1 million square feet between July and September, a 77 percent increase from the 9.7 million square feet reported during the same time period last year.
- Build-to-suit development continues to outpace speculative construction, accounting for 58.1% of activity, while projects without committed tenants represent the remaining 41.9%.
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.
