Quarterly report reveals office market trends, activity on upward trend to pre-pandemic levels

Chicago, IL – Avison Young today released its Fourth Quarter 2022 Office Market Report for Chicago. The report indicates that office visitors continue to progress upward towards pre-pandemic levels, that well-located and high-end buildings are performing as they were in 2018, and that average rental rates continue to see a steady increase.

“Even with its challenges, we’ve seen significant cause for optimism in Chicago’s office market in the fourth quarter,” said Damla Gerhart, Principal and Managing Director of the firm’s Chicago office. “While most of the market’s vacancy and availability rates saw continued increases, the flight to quality and location is apparent, with occupants seeking better spaces for their employees and boosting traffic back to the office.”

Avison Young reports that office visitor volumes are at 38.2% what they were relative to the week of March 15, 2020. However, Chicago’s vacancy rate is sitting at 20.2%, which represents a 2.5% increase from year-end 2021. The report also indicates that 2.4 million-square-feet (msf) of office space is currently under construction and will add significantly to the 5.9-msf delivered over the last two years.