January 2026
Hiffman Releases Year-End 2025 Office and Industrial Market Reports
NAI Hiffman is pleased to present the year-end 2025 office and industrial market reports, our firm’s in-depth look at statistics for the Chicago metropolitan commercial real estate markets.
OFFICE: Chicago Suburban Offices Evolve as Tenants Explore Market’s Variety
- Despite ongoing headwinds, Chicago’s suburban office market showed signs of stabilizing, continuing its evolution toward the new suburban normal.
- Leasing activity registered 828,457 square feet during Q4 2025, with Class B leasing making up 35.2% of that total.
- The fourth quarter saw net absorption reach -236,949 square feet, due primarily to a small number of larger tenant vacancies.
- Forward-thinking property managers who focus on tenant satisfaction and operational agility are setting the pace in the suburban market. The disparity between high-performing, modern facilities and outdated buildings is becoming increasingly pronounced each quarter.
Downtown Office
- Chicago’s CBD office market continued to soften during the third quarter with 289,340 square feet of negative absorption, closing out a full year with absorption in the negative.
- Overall vacancy rose to 24.9% during the fourth quarter, a new historical high as vacancy continues to climb.
- The downtown market registered 1.8 million square feet of new leasing activity during the fourth quarter, down 29.8% year-over-year from 2024.
INDUSTRIAL: Chicago Industrial Market Momentum Strengthens as Demand Rises and Development Trends Shift
- The Chicago market posted 7.9 million square feet of positive net absorption in the fourth quarter, an increase from the 7.5 million square feet recorded in the previous quarter. Year-end absorption now totals 18.7 million square feet, surpassing the 12.2 million square feet reported in 2024.
- Chicago recorded 10.3 million square feet of new leasing activity in the fourth quarter of 2025, up from 9.7 million square feet in the previous quarter. Year-
- Overall vacancy fell slightly by 10 basis points quarter-over-quarter to 6.0%. A balance between large tenant occupancies and new speculative deliveries contributed to this result.
- Build-to-suit developments once again overtook speculative development, with 53.5% of space under construction built with a committed tenant—reflecting the preference of many tenants to be involved in shaping the design of their future properties.
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.
