Downtown Chicago office market continues to soften as a growing number of occupiers prepare for re-engagement, reopening

As a growing percentage of the population became fully vaccinated in early 2021, many Chicago companies felt a renewed sense of urgency to re-engage in strategic planning. Following almost a year of playing “wait and see” as it related to office occupancy needs, the number of active tenants in the market appears to be on the rise and transaction activity increased from last quarter’s low. First-quarter leasing activity increased 63.9% from Q4 2020 but remained down by 73.5% as compared to a year ago, before the pandemic impact had hit the market. Fundamentals remain wholly altered from a year ago as the sublease market further swelled, and availability reached new highs.

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