Chicago is the Midwest's dominant commercial real estate market, with approximately 130 million square feet of office space in the CBD and suburbs. The city serves as a major logistics hub with significant industrial inventory in the O'Hare, I-290, and south suburban corridors. The Loop and River North office submarkets feature a mix of trophy Class A buildings and older Class B inventory with varied lease structures.
Commercial Space
130M sq ft
Avg Office Rent
$35–$55/sq ft
Vacancy Rate
24%
Avg Lease Term
5–10 years
Market data sourced from publicly available commercial real estate reports (CoStar, CBRE MarketView, JLL Research). Figures are approximate and may vary by submarket and property class.
Chicago CBD office leases are typically Modified Gross or FSG. Suburban office parks lean toward NNN or Modified Gross. Industrial properties throughout Cook and DuPage counties are predominantly NNN. Retail along Michigan Avenue and neighborhood corridors uses NNN. The Chicago market has seen significant concession packages in recent years due to elevated vacancy, making TI allowance and free-rent extraction especially important.
Illinois Landlord–Tenant Guide
State-specific commercial lease laws, notice periods, and tenant rights for Illinois →
Most Chicago CBD leases use a modified gross structure with a base year expense stop. Tenants pay increases above the base year, with CAM caps of 3–5% per year common in well-negotiated deals. Always verify whether the cap is cumulative or non-cumulative.
CAM reconciliation compares estimated vs. actual operating expenses in NNN leases. Learn the timeline, how to read a statement, common errors, and how to dispute overcharges.
Retail leases include percentage rent, co-tenancy clauses, exclusivity, and kick-out rights that office leases don't. Step-by-step guide to abstracting all retail-specific provisions.
A NNN lease quotes base rent, but your actual monthly payment is typically 25–40% higher. Learn to calculate total occupancy cost — base rent + CAM + taxes + insurance — with worked examples.
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