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Chicago Downtown Office Figures Q2 2023

July 7, 2023 10 Minute Read

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  • The Central Business District (CBD) saw just over 400,000 SF of positive net absorption following a negative net absorption of 102,916 SF in Q1 2023. Absorption in Q2 2023 is nearly 1.5 times more than in Q2 2022, which saw a positive net absorption of 289,609 SF.
  • A flight to quality continued, both in leasing volume and in physical move-ins this quarter. Some of these tenants chasing quality and experience are leaving Class B spaces and trading up, but many are leaving existing Class A spaces for newer buildings with the latest and greatest amenities.
  • Although sublease space continues to rise, there was 54% less space added in Q2 2023 as there was in Q1 of this year. Additionally, there was 33,000 SF less of net sublease space added this quarter compared to Q2 2022.
  • Leasing volume was slightly higher than the volume seen in Q1 with 1,072,547 SF of deals over 10,000 SF completed. However, this volume is less than half of the leasing activity seen at this time last year.
  • Two buildings were delivered in Q2 2023: 333 Wolf Point Plz (Salesforce Tower) and 1020 W Randolph St. Combined, these two buildings added 1,240,202 SF to the total tracked inventory, bringing it to over 144 million SF.