Suburban Chicago leasing moderates as market conditions normalize
Leasing activity in Suburban Chicago slowed to 1.3 million square feet (msf) in the first quarter of 2026, marking the third consecutive quarter below the five-year average. Despite the moderation, overall market conditions continued to normalize following the volatility of recent years. Availability held at 29.1%, down 30 basis points from one year ago, reflecting gradual tightening as excess space is worked through. As in prior quarters, activity was driven primarily by tenants maintaining a presence in their existing locations, often through extensions or expansions within current premises, as occupiers opted to refine space requirements rather than pursue large relocations.