Bradford Allen is pleased to share with you our latest office market report.
The first half of the year in the suburban office market:
- Vacancy was 25.1% marketwide, though when excluding “zombie” buildings with minimal occupancy, the adjusted vacancy rate was 20%.
- H1 2025 direct net absorption was effectively zero, a significant improvement from H1 2024’s negative 770,000 square feet.
- Investment sales activity totaled $121 million, with properties continuing to sell at substantial discounts—notably, the Oak Brook Office Center (327,000 square feet) sold for just under $9 million versus $33 million in 2013.
- Despite challenges, resilient demand persists for well-located, quality assets as tenants value operational advantages, amenities, and cost efficiencies.