Which Storylines are Shaping the Office Market in the Second Half of 2026?

From “Heartland Real Estate Business • June 2026 – REBusiness Online”

REBusiness Online recently asked CRE professionals their thoughts on the storylines shaping the office market in the second half of 2026 as part of their “Question of the Month” series. NAI Hiffman Executive Vice President Jim Adler believes the growing divide between high-quality office assets and aging, functionally obsolete buildings is going to be a critical consideration for ownership and tenants, both current and prospective.

Here is Jim’s full response:

Office leasing activity continues to stabilize, especially for Class A space in Chicago’s West Loop. Mars Snacking’s recent 170,000 square-foot lease in Fulton Market is one example of companies continuing to prioritize high-quality assets. We’re also seeing “spec suite graduates” — tenants that initially leased move-in-ready suites and are now expanding into larger, more permanent footprints — an encouraging sign for long-term occupancy growth.

On the investment side, discounted pricing is bringing capital back into the market as office buildings trade again after years of stagnation. Investors remain focused on top-tier assets and redevelopment opportunities, while obsolete buildings continue to renovated or removed from inventory through conversion to alternative uses. With little new construction and fewer expected downsizings, market sentiment is improving. We may be at the trough, but conditions are trending in a positive direction.

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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 275 employees strategically located throughout North America.

About Hiffman National:

Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, 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 275 employees nationally and an additional six hub locations and 25 satellite offices across North America.