Bradford Allen’s research team analyzed recent CoStar data to understand how sublease activity in Chicago’s CBD has evolved since 2019, as hybrid work patterns have become more established. While overall office availability has increased nearly 75% during that time, the sublease market has followed a different path. After peaking at 7.6 million square feet in 2023, available sublease inventory declined to 5.3 million square feet in 2025. At the same time, average sublease terms have nearly doubled to 66 months, and leasing activity has become more concentrated in high-performing submarkets — particularly the West Loop. Combined with average savings of $15 per square foot, these trends suggest subleasing is increasingly a durable, cost-effective strategy shaping future leasing behavior and space-planning decisions.
- Available sublease space in the Chicago CBD totaled 5.3 million square feet at the end of 2025, down from a peak of 7.6 million square feet in 2023.
- Since 2019, tenants have executed more than 4 million square feet of sublease transactions (for spaces of 5,000 square feet and above), averaging 515,500 square feet completed per year — roughly 10% of annual sublease inventory.
- Overall availability has increased nearly 75% since 2019, driven by shifting workplace strategies and evolving space needs.
- Average sublease term length has nearly doubled since 2019, with 2025 seeing an average term of just over 66 months, compared with nearly 38 months for deals signed in 2019 — suggesting tenants are increasingly willing to commit to longer sublease terms as hybrid strategies stabilize and space needs become clearer.
- A handful of submarkets have been more successful than others in leasing sublease space. The West Loop has emerged as a clear leader, followed by the Central Loop and River North. The West Loop accounted for an average of 36% of completed submarket activity annually, while Fulton Market made up just 6% of completed deals.
- Tenants save an average of $15 per square foot on sublease space, allowing cost-conscious tenants to take advantage of space quality and existing buildouts they may not have otherwise accessed.
SR VICE PRESIDENT
NEIL BOUHAN
Neil leads the firm’s research team. In addition to producing the flagship quarterly market reports and other thought leadership, BA Research spearheads diverse research initiatives to support acquisitions and operations teams across segments and geographies. Neil has over 15 years of experience in various research and communications roles and holds degrees from Johns Hopkins School of Advanced International Studies (MA) and the University of Chicago (AB).
SR ANALYST
MORGAN SULLIVAN
Morgan joined Bradford Allen in 2025 as a senior research analyst, supporting quarterly market analysis, thought leadership, content creation, and market surveillance. Her expertise in commercial real estate research supports BA Research’s operational efficiency and contributes to the development of scalable research processes and procedures.
Prior to joining Bradford Allen, Morgan spent seven years at CBRE, including four years focused on the Chicago office market as a research analyst. In that role, she spearheaded quarterly market reporting, worked closely with marketing and office brokerage professionals on business development and pursuits, and served as the team’s main point of contact for ad hoc requests. Before joining CBRE Research, Morgan spent three years as a client services coordinator, providing marketing and administrative support for one of CBRE’s top-grossing retail teams. She was awarded the CBRE Chicago Rising Star award in 2024.
Outside of work, Morgan enjoys spending time with her fiancé, Jae, and their two cats, Magnolia and Phyllis. She is an avid country and western music fan, often returning to the Stockyards of Fort Worth to two-step with her sister and parents. Morgan graduated from the University of North Texas in 2017 and has spent the better part of the past decade learning to weather Chicago winters.