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.
By Angel Campa, Founder · Updated March 2026
Commercial Space
130M sq ft
Avg Office Rent
$35–$55/sq ft
Vacancy Rate
24%
Avg Lease Term
5–10 years
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 →
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