Chicago Office Market Report

Positive momentum mounting in Schaumburg-Arlington Heights. Last year, a notable count of office commitments were initiated across the northwest suburbs of Schaumburg and Arlington Heights, headlined by United Airlines, CVS Caremark and CDW Corporation. The resulting boost to net absorption and drop in local vacancy may extend into this year as some additional move-ins are planned. Still, the area remains in recovery as vacancy continues to exceed 2019’s recording of 24.5 percent. Meanwhile, office space demand near McCormick Place, Hyde Park, UIC and the Medical District is driving below market vacancy rates relative to the rest of Chicagoland, as the area has yet to record negative net absorption in the post-pandemic era. This is aided by asking rents that are below the Loop, despite its proximity. Class B/C assets are most popular here, with the lowest segment vacancy rate of any submarket in Chicago entering this year.