Suburban Chicago office market remains stymied by record-high availability, slackened demand

The Suburban Chicago office market remained in a prolonged state of imbalance at the midpoint of 2024 as availability tracked higher, while many owners who lack the necessary capital were handcuffed to execute new deals. Overall availability across Suburban Chicago stood at 32.3%, increasing 150 basis points (bps) over the last year. At 36.6%, Class A availability grew at an even faster pace, increasing 230 bps from a year ago. Lenders continued to take back building keys as income streams dried up. Among the most recent seizure, Net Lease Office Properties in May surrendered Constellation Energy’s regional headquarters 4300 Winfield Road in Warrenville to its lender American National Insurance.

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