CHICAGO — Bradford Allen, a national full-service real estate firm, today released its “Q2/25 Office Market Report: Downtown Chicago” and “Mid-Year 2025 Office Market Report: Suburban Chicago.” The firm’s in-house research team reported the CBD vacancy rate rose to 24.7%, up from 23.4% in the first quarter, and average gross asking rates declined to $41.54 from $42.56 in the same period. Meanwhile, the suburban vacancy rate reached 25.1%, up from 24.6% at the end of 2024, and gross asking rents declined to $24 per square foot.
Still, companies continued to sign large leases and investors acquired more distressed and obsolete properties, whether to recapitalize or convert to new uses. Move-in-ready office suites, which comprise built-out and speculative spaces, remained popular, accounting for almost one-third of downtown leases and more than a third of suburban leases. Those between 3,000 and 12,000 square feet are leasing the fastest, according to Bradford Allen.
“Behind the numbers is a market that’s continuing to find balance but healthier than some might realize based on recent headlines,” said Neil Bouhan, senior managing director, research and communications, at Bradford Allen. “As conversions take obsolete product off the market and distressed properties find new owners and tenants, vacancy will decline further and better reflect current market conditions.”
Downtown Chicago
Tenants signed approximately 1.9 million square feet of leases in downtown Chicago in the second quarter, with about half of that in the West Loop. Golub Capital’s 205,450-square-foot lease at 225 W. Randolph St. was the quarter’s largest. Throughout downtown, direct net absorption was negative 1.5 million square feet for the quarter, making second-quarter 2025 among the weakest periods for overall demand since first-quarter 2024.
Investment sales totaled $118.3 million in the second quarter, down from $156.7 million in the first quarter, a 24.5% decrease. Kohan Retail Investment Group’s purchase of 311 S. Wacker Drive for $45 million was the quarter’s largest investment deal. The purchase price equated to $34 per square foot, down significantly from the $230 per square foot paid in 2014 but a low enough basis for the new owners, who are considering converting some of the office space into a hotel, to pursue a strategic repositioning.
Other conversion deals are expected to add a combined total of 734 residential units to the market, including:
WindWave Real Estate and Path Construction bought a portion of 111 W. Illinois St. for $17 million for conversion into 153 residential units.
Concord Capital bought 223 W. Erie St. for $6.85 million and plans to convert it into 66 residential units.
Additional conversion projects announced were 1500 N. Halsted St. near Goose Island (31 units) and 309 W. Washington St. (84 units).
Suburban Chicago
The vacancy rate in the suburbs was 25.1% for the first half of 2025, up from 24.6% at year-end 2024. Gross asking rents declined to $24 per square foot.
Suburban office leasing activity was 2.9 million square feet at mid-year, ahead of the pace for 2024, which saw a total of 5.7 million square feet. Net absorption was negative 5,639 square feet, an improvement over the net negative 770,000 square feet of absorption in the first half of last year.
Investment sales totaled $121 million through June, well below the pace for last year, when $368 million in sales were recorded at year-end.
Market conditions continue to present opportunities for patient capital looking to acquire quality assets in prime suburban locations, according to Bradford Allen. For example, GTZ Properties acquired the 327,000-square-foot Oak Brook Office Center for just under $9 million, a significant discount from the 2013 purchase price of $33 million. GTZ plans to maintain 100,000 square feet of upgraded office space while exploring retail and entertainment conversions for the remainder of the property, located about 3 miles from the Oakbrook Center mall.
Fortune Brands Innovations leased two of three buildings at 1 Horizon Way in Deerfield, the former Horizon Therapeutics campus. The deal was backed by Illinois EDGE tax credits in exchange for creating 400 new jobs by late 2027. Vantive, the kidney care spinout from Baxter International, took 390,000 square feet at 510 Lake Cook Road in Deerfield, bringing 200 employees and 50 new jobs to the former Caterpillar site.
Full copies of each report can be downloaded using the following links:
Bradford Allen (BA) is a commercial real estate firm based in the heart of downtown Chicago. Founded in 2003 by Jeff Bernstein and Larry Elbaum as an office brokerage, the firm has grown into a vertically integrated commercial real estate company, offering a full array of services and expertise across multiple U.S. markets to entrepreneurial, corporate and not-for-profit clients, including strategy, marketing and transaction execution for occupiers, investors and owners. For more information, visit bradfordallen.com.
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Editors:
For more information or to schedule an interview, contact Patty Cronin, pcronin@taylorjohnson.com, (312) 267-4513.
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.
Bradford Allen is pleased to share with you our latest office market report. Activity in Chicago’s downtown office market was steady, as firms expanded and well-capitalized owners continued robust leasing programs.
This quarter in Chicago’s downtown office market:
Q2 2025 net absorption was negative 1.5 million square feet, among the weakest since Q1 2024.
Direct vacancy continued to climb, reaching a record high of 24.7%, up 1.3 percentage points from Q1 2025.
The average gross asking rates were down from the prior quarter to approximately $41 per square foot.
Spec suites continued to outperform the market, accounting for nearly one-third of all leased square footage year to date, remaining highly sought after by tenants.
Class A high-rise marks firm’s second office acquisition in South Florida
Bradford Allen has acquired One Clearlake, an 18-story Class A office tower in downtown West Palm Beach, Fla. The firm plans to invest an additional $10 million to enhance the 221,661-square-foot property. (Credit: Bradford Allen and Turnkey Media)
WEST PALM BEACH, Fla. — Bradford Allen Investment Advisors today announced it has acquired One Clearlake, an 18-story Class A office tower at 250 S. Australian Ave. in downtown West Palm Beach, Fla. The transaction marks Bradford Allen’s second office acquisition in South Florida following its purchase of 350 and 450 E. Las Olas Blvd. in Fort Lauderdale in February 2025.
Bradford Allen will provide asset and property management services for One Clearlake, with plans to invest an additional $10 million to complete a full renovation of the property. As with 350 and 450 E. Las Olas, Jon Blunk and Laurel Oswald of TCRE will handle the leasing for the property.
Larry Elbaum, co-founder of Bradford Allen, said: “This acquisition not only expands Bradford Allen’s footprint in South Florida but also reflects my partner Jeff Bernstein’s and my confidence in the market. We look forward to improving One Clearlake and delivering an exceptional tenant experience.”
The 221,661-square-foot tower is nearly 63% occupied, with national credit tenants including Truist Bank, Ideal Nutrition and Robert Half. One Clearlake was built in 1986 with updates as recent as last year. Bradford Allen’s planned improvements include a new roof, renovated elevator system, state-of-the-art conference center, upgraded fitness center consistent with other Class A buildings and a reimagined tenant lounge and food service. Bradford Allen also plans to build four move-in-ready spec suites on one floor that will be ready for delivery by fourth-quarter 2025.
“There is tremendous upside in repositioning One Clearlake for today’s market,” said Blunk, president of TCRE. “As in other CBDs, we continue to see a flight to quality in downtown West Palm Beach, where limited trophy space is available even as the area experiences an influx of prominent employers — a trend that has made it one of the top-performing office submarkets in the country.”
One Clearlake is LEED Gold- and Energy Star-certified and offers 360-degree water views as well as a five-story parking garage. In addition, the property benefits from its proximity to Interstate 95 and West Palm Beach stations for South Florida’s Tri-Rail commuter rail service and Brightline rail service. The tower is also within walking distance to CityPlace, an upscale lifestyle center, and adjacent to the future sites of Cleveland Clinic’s Tomsich Health and Medical Center and Vanderbilt University’s graduate school campus.
“West Palm Beach is one of South Florida’s most exciting submarkets, with an extensive pipeline of residential and mixed-use projects both under construction and planned,” said CBRE Vice Chairman Christian Lee. “Office fundamentals in West Palm Beach also remain strong, with the submarket benefiting from a wave of migrations from affluent individuals and their companies.”
The Florida arm of CBRE’s National Office Partners, led by Lee and Vice President Sean Kelly, represented the confidential seller. The CBRE team also included Senior Vice President Amy Julian, First Vice President Andrew Chilgren, Senior Associate Tom Rappa and Financial Analyst Matthew Lee.
In addition to its South Florida assets, Bradford Allen owns properties in suburban Chicago; Greenwich, Conn.; Denver; Jacksonville, Fla.; and other markets. The firm has made a number of other value-add investments in large office properties as well.
About Bradford Allen:
Bradford Allen (BA) is a commercial real estate firm based in the heart of downtown Chicago. Founded in 2003 by Jeff Bernstein and Larry Elbaum as an office brokerage, the firm has grown into a vertically integrated commercial real estate company, offering a full array of services and expertise across multiple U.S. markets to entrepreneurial, corporate and not-for-profit clients, including strategy, marketing and transaction execution for occupiers, investors and owners. For more information, visit bradfordallen.com.
Ben is back with another episode of Ten with Ben, exploring the recent momentum in the commercial real estate market. Leasing velocity is up, transaction volume is rising, and distressed assets that once seemed stagnant are now trading hands. Post-election stability and renewed business confidence have fueled this shift, as companies gain clarity on their long-term office strategies. The return-to-office movement is no longer just a talking point with many firms solidifying in-person work policies, with some even requiring five-day attendance. Landlords are responding by enhancing assets with premium amenities to attract and retain tenants. As deal flow accelerates, the market is demonstrating greater resilience than many anticipated—particularly in Chicago, where leasing and investment activities showcase a revived sense of optimism.
Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.
Bradford Allen is pleased to share with you our latest office market report.
The second half of the year in the suburban office market:
Vacancy was effectively unchanged in the second half of the year at 24.6%.
Year-end direct net absorption was negative 1.4 million square feet, significantly worse than 2023’s negative 173,000 square feet.
Much of the market’s distress lies in older, poorly located properties, which only account for 2.7% of the market’s overall inventory.
Investment sales activity was up this year as $368 million traded hands, with properties selling for an average discount of 17% from their previous purchase price.
Bradford Allen is pleased to share with you our latest office market report.
This quarter in the downtown office market:
2024 net absorption was negative 3.6 million square feet, nearly double the negative 1.9 million square feet recorded in 2023.
Direct vacancy continued to climb, reaching a record high of 23.2%.
The average gross asking rates were $42.85 per square foot.
Spec suites and full build-outs continued to outperform the market, accounting for an increasing share of leasing activity—28.6% in 2024 up from 9% in 2019.
On this episode of Ten with Ben, Justin Kessler, Nathan Meissner, and Lauryn Sussman join Ben to reflect on a productive 2024 for the tenant rep team at Bradford Allen. The team discusses the uptick in tenant activity, surprising stability in office space needs, and the late-year momentum in deal-making. They also highlight how flexibility from ownership groups has created opportunities for tenants despite market challenges.
Looking ahead to 2025, the team shares their optimism for continued market growth and new opportunities as the market adapts.
Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.
Bradford Allen is pleased to share with you our latest office market report.
It was a familiar story in Q3 for Chicago’s downtown office market as headline statistics didn’t improve, nor degrade, materially over the prior quarter.
Absorption was negative 600,000 square feet, bringing the year-to-date absorption to negative 2.6 million square feet.
The direct vacancy rate in the CBD reached 22.5%.
The CBD’s average gross asking rate dropped slightly to $42.85 per square foot.
Well-capitalized owners continued to withstand market fluctuations, attracting and retaining a strong tenant base.
Bradford Allen is pleased to share with you our latest office market report.
This quarter in the downtown office market:
Absorption improved but remained negative with -67,000 square feet absorbed through Q2/24, resulting in a total of -1.9 million square feet through the first half of 2024.
The direct vacancy rate reached 22% in Chicago’s CBD.
Demand for move-in-ready suites has increased significantly over the past several years.
The average gross asking rate for the CBD held steady at $43 per square foot.
New York, NY – Bradford Allen, a national full-service real estate firm, today announced the execution of a new lease on behalf of P.J. Clarke’s at 434 W. 33rd Street for 7,500 square feet. The historic local eatery will occupy 7,500 square feet at Manhattan West, a vibrant, six-acre mixed-use development of Brookfield Properties. Glenn Isaacson, executive vice president at Bradford Allen’s New York office, represented the tenant.
“We’re proud to have played a pivotal role in facilitating P.J. Clarke’s expansion into Manhattan West. By representing the tenant in this transaction, we not only contributed to their strategic growth but also enhanced the community by bringing one of the city’s iconic local brands to the West Side,” said Isaacson.
P.J. Clarke’s original location at Third Avenue and 55th Street is a New York staple with a legacy dating back to 1884. The new location will mark the eatery’s fourth—and largest—in Manhattan, joining a growing enterprise that now Philadelphia and Washington D.C.
About Bradford Allen
Bradford Allen (BA) is a commercial real estate firm based in the heart of downtown Chicago. Founded in 2003 by principals Jeffrey Bernstein and Laurence Elbaum as an office brokerage, the firm has grown into a vertically integrated commercial real estate company, offering a full array of services and expertise across multiple U.S. markets to entrepreneurial, corporate and not-for-profit clients, including strategy, marketing and transaction execution for occupiers, investors and owners. For more information, visit bradfordallen.com.
Chicago’s suburban office market is undergoing a period of intense transformation. But are the headlines about its unending struggles justified? Our latest report challenges the prevailing narrative, revealing a market filled with opportunities. Dive deeper to uncover insights that redefine the competitive landscape—insights the headlines have overlooked.
CHICAGO — Bradford Allen, a national full-service real estate firm, today released its Q1/24 Downtown Chicago Office Market Report showing that CBD average gross asking rents held steady at $43 per square foot. At the same time, the office vacancy rate continued to rise, surpassing 21%, and demand was soft, with negative absorption of 1.4 million square feet.
Leasing volume remained below historic levels, with only 1.3 million square feet leased in the first quarter versus 2.1 million square feet in first-quarter 2023 and 4.9 million square feet in first-quarter 2019, before the pandemic. Continuing a post-pandemic trend, many tenants are seeking prebuilt, move-in ready suites. Last quarter, 38% of leases signed in the CBD were for move-in-ready space. For all of 2023, approximately 33% of leases signed were for move-in-ready suites, compared with 15% in 2019, according to Bradford Allen research.
“The distress in Chicago’s CBD office market is likely to continue as owners, lenders and tenants navigate turbulent market conditions,” said Neil Bouhan, senior managing director, research and communications, for Bradford Allen. “Our data indicates more than half of all square footage leased prior to the pandemic has not yet expired, suggesting that many companies have yet to address their actual space needs in the CBD. This is likely to result in continued downsizing. But even in this environment, owners in the financial position to reinvest in their buildings and negotiate flexible lease terms with tenants have been able to keep their assets well occupied, outperforming the overall market.”
The benefit of financial strength in this market is exemplified by Ivanhoe Capital’s $75 million repositioning of 10 and 120 S. Riverside Plaza, a two-building, 1.4 million-square-foot office complex on the Chicago River in the West Loop. After renovations, Ivanhoe leased 156,000 square feet of office space in the property last year and an additional three leases totaling 75,000 square feet so far this year, with Attorneys’ Liability Assurance Society taking the largest lease at 37,000 square feet.
Other highlights of the Bradford Allen report include:
Bradford Allen researchers estimate there are 23 buildings in the CBD with distressed loans, almost half in the Central Loop. If interest rates remain high, the financial pressure on leveraged owners will mount as $2.8 billion of debt is set to expire by the end of 2025.
Investment sales remained at historic lows, with only $98 million trading last quarter, in line with first-quarter 2023 but still far below the average $750 million in sales in the first quarters of 2015 through 2019. Of the $98 million that has traded so far this year, $60 million was for the sale of 150 N. Michigan Ave., which was purchased by Chicago real estate firm R2.
The amount of sublease space on the market declined last quarter to 7 million square feet but remains at historically elevated levels. Most is large space; for example, a tenant seeking less than 10,000 square feet can only access about 9% of current sublease inventory. Meanwhile, 80% of leases signed in 2023 were for less than 10,000 square feet.
About Bradford Allen:
Bradford Allen (BA) is a commercial real estate firm based in the heart of downtown Chicago. Founded in 2003 by principals Jeffrey Bernstein and Laurence Elbaum as an office brokerage, the firm has grown into a vertically integrated commercial real estate company, offering a full array of services and expertise across multiple U.S. markets to entrepreneurial, corporate and not-for-profit clients, including strategy, marketing and transaction execution for occupiers, investors and owners. For more information, visit bradfordallen.com.
Bradford Allen is pleased to share with you our latest office market report.
The second half of the year in the suburban office market:
Leasing activity remained above pre-pandemic levels with more than 5.2 million s.f. leased through 2023.
Absorption remained negative with -930,000 s.f. absorbed through the back half of 2023, resulting in -1.2 million s.f. of net absorption through the year.
The direct vacancy rate increased to 28.3%.
The average gross asking rate for the market is $27 per s.f.
Ten with Ben is back to showcase the “power of the ask.” Today’s market is all about seizing opportunities through creative negotiation. Current conditions present unique opportunities for tenants to renegotiate leases and for landlords to showcase their financial stability as a major strength. Ben offers actionable insight to both tenants and landlords on how to navigate the market effectively, from securing favorable lease terms to arranging unexpected perks.
This week, Ben gets candid about the lessons he’s learned over twenty years in real estate—and how the best advice always transcends the business. As a proud American Jew, Ben also reminds us to check in on Jewish friends and colleagues as fallout from the war in Israel continues to be felt around the world. Be present for one another—we are in this together.
Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.
In this week’s episode, Ben reflects on his two-decade-long journey as a tenant rep broker, shares current market conditions, and identifies recent challenges the industry is facing. From the bustling Fulton Market district to new activity throughout the Loop, get an expert view on what’s shaping Chicago’s office landscape. Post-pandemic, the deals may be smaller, but leases are being signed. Ben also touches on the perseverance of brokers, the importance of location to tenants, and just what makes Chicago such a dynamic and resilient city.
In the wake of the unprecedented terrorist attack that ignited war in Israel, we recognize this is a time of immeasurable grief and hardship for many around the world. Ben begins this week’s podcast expressing his feelings with an open discussion about his connection to Israel.
Prefer the audio? Listen to the MP3 or stream from your favorite podcast provider.
CHICAGO, IL — September 6, 2023 — Bradford Allen, a national full-service commercial real estate firm, today announced the leasing of 15,000 square feet at Edens Corporate Center in Northbrook, Illinois, a northern suburb of Chicago. Senior managing director Joel Berger represented ownership in an expansion for MyHome Protection and separate transactions that welcomed Cedar Pine Capital and Beyond Finance to the building.
Current tenant MyHome Protection—which originally took 6,614 square feet of space in November 2022—has completed a direct expansion and extension for 3,641 square feet, which brings its total to 10,255 square feet.
Cedar Pine Capital leased approximately 6,000 square feet of high-end space, citing the quality of the property, its curb appeal, an enticing new amenity center, and the strategic location as prime selling points. The deal was finalized in a direct transaction.
Beyond Finance was quick to seize a 5,500-square-foot move-in-ready suite. This swift move caters to their local executive team, who had previously commuted downtown. Securing the lease within just two weeks, Darryl Silverman of Colliers represented Beyond Finance.
“Since taking on representation of Edens Corporate Center two years ago, our focus has been offering tailored solutions that respond to unique tenant needs,” said Berger. “The quick leasing agreements we’ve secured with Cedar Pine Capital and Beyond Finance are prime examples. Whether it’s high-end, custom spaces or move-in-ready suites for a rapidly expanding business, our approach is resonating with tenants looking for something beyond the typical offerings in the North Suburban market.”
These leases emphasize Edens Corporate Center’s commitment to delivering a superior customer experience—blending urban convenience, curb appeal, and a prime location to meet the high standards of today’s premier businesses.
About Bradford Allen
Bradford Allen is a national commercial real estate firm based in the heart of downtown Chicago. The company offers a full array of brokerage services and expertise to entrepreneurial, corporate, and not-for-profit clients. Services include strategy, marketing, and transaction execution for occupiers, investors, and owners of commercial real estate. Bradford Allen is the brand name of Bradford Allen Realty Services.
New York, NY — November 7, 2022 — Bradford Allen Investment Advisors (BAIA), a subsidiary of Bradford Allen, has announced the acquisition of a two-building, Class A office portfolio located in Greenwich, Conn. The portfolio comprises 1 Lafayette Place and 1 E. Putnam Avenue—both 100% leased—and was sold through a joint venture between Global Gate Capital and Lincoln Property Company. Steve Bardsley, Jeffrey Dunne, and Travis Langer of CBRE represented the sellers.
Situated near Greenwich Avenue in the Central Business District, the 90,268-square-foot, two-building complex includes high-profile, institutional tenants such as Wells Fargo and BlackRock.
“Greenwich is already one of the strongest CBD markets in the country and still holds immense potential. These buildings are examples of the market’s attractive conditions and high demand, and the acquisition reflects our strong belief in the ability of physical office space to remain the central pillar to transacting business,” said Jason Gold, executive managing director at Bradford Allen.
The transaction marks the Chicago-based real estate firm’s first New York-area acquisition in a move that further underscores its commitment to the local market. Bradford Allen opened its first dedicated New York office in 2021, tapping veteran broker Glenn Isaacson to oversee operations. The firm’s New York office is located at 777 Third Avenue in Manhattan.
About Bradford Allen
Bradford Allen (BA) is a national commercial real estate firm based in the heart of downtown Chicago. Founded in 2003 by principals Jeffrey Bernstein and Laurence Elbaum as an office brokerage, the firm has grown into a vertically integrated commercial real estate company, offering a full array of services and expertise across multiple U.S. markets to entrepreneurial, corporate and not-for-profit clients, including strategy, marketing and transaction execution for occupiers, investors and owners. For more information, visit bradfordallen.com.
CHICAGO, IL — Joel Berger and Craig Nadborne, Senior Managing Directors at Bradford Allen, represented Restoration Builders in the relocation and expansion of the repair and restoration company’s Midwest corporate office. Previously located in Elmhurst, Restoration Builders will now office out of a 10,000-square-foot space at 263 Shuman Boulevard in Naperville, Illinois.
Known as The Shuman, the recently redeveloped 350,000-square-foot office building delivers an urban vibe to the suburban office landscape, promising tenants the most comprehensive workplace experience outside of the Chicago CBD. Kellen Monti of JLL represented the building in the sublease of the space.
“We were thrilled to help place Restoration Builders in such a terrific, modern space. The relocation is a great example of what we’re seeing more and more—companies searching out amenity-laden spaces in Class A buildings to entice workers back to the office full time. The Shuman offers an environment that gets tenants excited about coming to work,” said Berger.
The downtown Chicago office market started 2016 off with a flurry of strong activity. Large deal transactions included CNA’s announcement of its relocation to 151 North Franklin for 227,0000 square feet and Cars.com’s transaction to move into 158,000 square feet at 300 S Riverside.
The vacancy rate dropped to 12.0% thanks to over 230,000 square feet of positive absorption. The East Loop contributed the most to this number, with Clark Hill and McDermott, Will & Emery both moving into Prudential Plaza for a total of over 120,000 square feet.
Rental rates remained steady with the direct gross average asking rate ending the quarter at $36.40. A four percent growth year-over-year.
Suburban Office Market Continues to Strengthen; Vacancy and Availability Rates Decrease
The Suburban office market continued to improve going into the 3Q of 2015. The vacancy rate decreased from 18.9% to 17.8% and the availability rate decreased from 24.4% to 22.3% year over year, respectively. While YTD net absorption is essentially flat at negative 27,182 SF thru the mid-year, it is significantly better than the negative 518,096 thru mid-year 2014. Overall these statistics indicate that the suburban market is becoming healthier and more dynamic.
Downtown Market Approaches Equilibrium as the Vacancy Rate Continues to Decrease and Asking Rates Increase
Chicago’s downtown office market is continuing to become tighter. The overall vacancy rate has decreased from 13.4% to 12.6%, year over year. This is the lowest it has been since the end of 2008 and now brings the market almost to equilibrium. Simultaneously Chicago’s unemployment rate continued to improve in the second quarter. According to the Illinois Department of Employment Security, Chicago’s unemployment rate decrease from 7.7% in May 2014 to 6.7%, May 2015.
