Steady leasing and shrinking inventory support market progress

Downtown Chicago’s office market continued to stabilize in Q2 2026, supported by resilient leasing activity and gradual improvements in market fundamentals. Availability declined to 29.0%, down 90 basis points (bps) from a year ago, as tenant demand and ongoing inventory contraction continued to absorb space. Asking rents rose to a record $47.90 per square foot (psf), up 3.7% year over year, while Class A rents reached a new high of $56.00 psf. The gap between Class A and overall asking rents continued to widen, reflecting sustained occupier preference for higher-quality space and the relative pricing power that top-tier buildings have maintained. Quarterly leasing volume reached 2.4 msf, a healthy result that points to a leasing environment that has found a stable footing.

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