Chicago, IL office market
Office space in The Loop.
The Loop is the Chicago CBD bounded by the Chicago River, Lake Michigan, and Roosevelt Road. Inventory is ~135 million square feet, the second-largest CBD office market in the U.S. after Manhattan. Class A asking rents run $35–$48/SF (gross), making it the most-affordable major-city Class A market in the country. Anchor tenants include the major law firms, banks, BMO Tower, and Aon Center.
The Loop has been pressured by the same post-COVID return-to-office headwinds as other major CBDs, with availability sitting in the high-20s%. The headline number is misleading because Chicago's Loop has more sub-zone variation than most CBDs. The West Loop / Fulton Market submarket has been the standout performer with single-digit availability for trophy product, while LaSalle Street's older bank buildings are deeply oversupplied.
Class A inventory in the Loop is genuinely high quality — Willis Tower (110 stories, $500M renovation completed 2019), Aon Center, the BMO Tower (newest at the West Loop edge), Salesforce Tower Chicago. These trophy buildings command rent premiums of $10–$20/SF over the rest of the submarket and have leasing velocity in line with national trophy product despite the headline vacancy.
The deep-value opportunity is in older Class B+ Loop product — 1980s-era buildings on LaSalle and Madison that trade in the $25–$35/SF range. For cost-conscious tenants who can build out their own space, this is the cheapest Class B+ pricing in any major U.S. CBD. Several of these buildings are in conversion or planning conversion to residential, which will eventually tighten the market.
Market snapshot
By the numbers
- Inventory
- ~135M SF
- Class A asking rent
- $35–$48/SF (gross)
- Trophy asking rent
- $48–$62/SF (gross)
- Class B asking rent
- $25–$35/SF (gross)
- Availability rate
- 26–29%
- Typical TI allowance
- $80–$140/SF
Deals tracked
-
Avg rent
-/SF
Avg TI
-/SF
Median deal
-K SF
Notable buildings
- Willis Tower
- Aon Center
- BMO Tower (320 S Canal)
- Salesforce Tower Chicago
- 311 South Wacker
Broker perspective
Chicago is fundamentally underrated by national broker firms because the major broker shops earn lower commissions on Chicago deals (lower rents = lower commission percentages on percentage-of-rent fees). For tenants relocating from coastal markets, the cost-of-occupancy savings are extraordinary — a Manhattan tenant can lease comparable Class A in the Loop for 50–60% less. Make the cost-of-occupancy comparison explicit in any pitch to a coastal-headquartered client.
Frequently asked
People also ask
How does the Loop compare to Fulton Market?
Loop is traditional CBD Class A with significant availability. Fulton Market is the redeveloped meatpacking district just west, with single-digit availability and 20–30% rent premiums on Class A. Loop wins on price and trophy product; Fulton Market wins on velocity and current desirability.
Is Chicago Class A really cheaper than coastal markets?
Yes, dramatically. Chicago Class A averages $35–$48/SF gross. Manhattan averages $75–$120/SF, San Francisco $55–$80/SF, Boston $60–$85/SF. For a 50,000 SF tenant, the cost-of-occupancy difference is $2–4M per year vs. NYC.
What's the full-service-gross convention in Chicago?
Chicago Class A typically quotes full-service gross (FSG) — base rent including operating expenses and taxes for a base year, with tenant paying escalations above that. Confirm base year, expense stops, and tax stops in any LOI.
Is the Loop recovering?
Slowly and unevenly. Trophy product is leasing well; older Class B+ continues to soften. Several office-to-residential conversions are underway, which will eventually reduce inventory and tighten the market. 24–36 month time horizon for meaningful recovery.
Related submarkets
Fulton Market / West Loop
Fulton Market is Chicago's standout post-COVID winner — redeveloped meatpacking district turned tech-creative submarket, with single-digit availability while the rest of the Loop softens.
River North
River North sits just north of the Chicago River from the Loop — advertising, marketing agencies, tech-startup density, and converted-loft Class B+ at materially lower rents than the Loop.
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