It is no secret that downtown Chicago office vacancies have been growing. A recent Crain’s Chicago article (April 10, 2023) stated that the 2023 1st quarter downtown office vacancy rate was a very high 22.4%. This figure is up from 13.8% pre-pandemic. Further complicating matters for downtown landlords is the glut of new office space coming online. In the same article, Crain’s Chicago also indicated that seven more office buildings — an astounding 2.7 million square feet of office space — are under construction in downtown Chicago. Tenants will have a lot of options when looking for space in the Chicago Loop area now and even more so in years to come.

What does this mean for tenants? Great opportunity. Class A office space is in great supply. Class B office space now competes with an abundance of vacant Class A office space. Businesses looking for office space in the Loop are encouraged to seek out experienced counsel and brokerage representation that are familiar with this ever-changing market.

Right now tenants have leverage to fully explore tenant construction allowances, free rent periods and a litany of other concessions, including tenant-favorable lease terms. If a business is financially healthy and looking to grow, there are great opportunities right now in the Chicago Loop. Such businesses are well advised not to underestimate their leverage and to take advantage of this very favorable time for those looking for office space in the downtown Chicago area.