CBRE

FIGURES|CHICAGOOFFICE|Q42025

CBDexperiencesnegativeabsorptionagain

26.6%

VacancyRate

(116,797)

SFNetAbsorption

0

SFConstructionDelivered

369,008

SFUnderConstruction

$45.25

FSG/YRDirectLeaseRate

Note:Arrowsindicatechangefrompreviousquarter.

MARKETOVERVIEW

-Therewereapproximately1.5millionSFofdealscompletedinQ42025.CBDyeartodateleasingvolumedecreasedby6%fromthe7,533,071SFvolumewitnessedin2024,butisup11%fromthe2023totalvolume.

-TheCentralBusinessDistrict(CBD)recordednearly117,000SFofnegativenetabsorptioninthefinalquarterof2025,downfromthenearly58,000SFofnegativeabsorptionlastquarter.LargemovesattributingtothisabsorptionareFoxtrotwhichvacated25,426SFat167NGreenStinanofficeclosureandRJO’Brienwhichvacated22,649SFat222SRiversidePlaza.

-919WFultonremainstobetheonlyunderconstructionbuildingintheCBD.The369,008SFFultonMarketcreativeofficespaceisexpectedtodeliverinQ12026.Transformative

developmentprojectswilleventuallyhelpsolvesupplychallengesatbothendsofthemarket.

-InQ42025theoverallofficevacancyratestoodat26.6%,a10-basispointincreasequarter-over-quarteranda260-basispointincreasefromthe2024average.

-Therewere7salesintheCBDmarketforQ4.Thelargestsaleofthequarter,190NLaSalle,waspurchasedbyNamdarRealtyGroupfor$55million,asignificantdecreasefromthe$230millionitwaspreviouslytradedforin2019.125SWackerwaspurchasedbyMenashePropertiesfor$51.5million,previouslysellingfor$145millionin2017.

FIGURE1:HistoricalAbsorption,Deliveries,andVacancy

Sq.Ft.millionsVacancy%

2.0

1.5

1.0

0.5

0.0

(0.5)

(1.0)

(1.5)

NetAbsorptionDeliveriesVacancyRate

30

25

20

15

10

5

0

Source:CBREResearch,Q42025

1CBRERESEARCH?2026CBRE,INC.

FIGURES|CHICAGOOFFICE|Q42025

2CBRERESEARCH?2026CBRE,INC.

Vacancy

InQ42025theoverallofficevacancyratestoodat26.6%,a10-basispointincreaseQOQ

(quarter-over-quarter)and20-basispointsabovethe2025average.ClassAhasavacancyrateof19.9%,makingit13.9%lowerthantheClassB.

ThesubmarketwiththehighestvacancyratesremaintobeRiverNorthwitha35.4%averagedirectvacancyratefortheyear,increasingfromthe34.8%RiverNorthyearly2024average.

Thiscaninpartbeattributedtonewconstructionandsmallsubmarketsize.ThesubmarketwiththelowestvacancyrateisFultonMarketat16.8%,althoughup70basispointssinceQ3.

OnemovecontributingtoaFultonMarketvacancyincreaseisFoxtrot,whichvacated25,426SFat167NGreenSt.

SubleaseavailabilityintheCBDsawlittlechangeinQ42025,uponly7%fromlastquarters’reported5.3millionSF.NotablesubleasedealsinQ4includeWolverinewithan82,578SF

subleaseat433WVanBuren,Transloopwitha44,457SFsubleaseat350NOrleansSt,and1871witha28,00SFsubleaseat111NCanalSt.

AskingRent

TheaverageaskingrateintheCBDwas$45.38inQ4,a$0.13increasequarter-over-quarter.

Theyearlyaveragewas$45.34,peakinginQ1at$45.49.The2025yearlyaskingrateaveragereflectsa$0.31decreasefromthe2024.ThehighestratesinthemarketareinRiverNorth,withanaverageaskingrateof$50.49.

SubleasespaceprovestobeastrongeconomicoptionintheCBD.Theaverageweightedaskingratesare$36.99forClassAsubleasespace,a31%reductionfromtheClassAdirectspaces.ClassBprovidessimilareconomicbenefits,with$30.45averageaskingratesfor

subleasespace(a30%reductionfromClassBdirectspaces).

Therewere7salesintheCBDmarketforQ4,withsalespickingupgenerallythroughout2025.Thelargestsaleofthequarter,190NLaSalle,waspurchasedbyNamdarRealtyGroupfor$55million,asignificantdecreasefromthe$230millionitwaspreviouslytradedforin2019.125SWackerwaspurchasedbyMenashePropertiesfor$51.5million,previouslysellingfor$145

millionin2017.

FIGURE2:VacancyRatesbyClass

VacancyRate(%)

40

35

30

25

20

15

10

5

0

OverallClassAClassB

Source:CBREResearch,Q42025

FIGURE3:Avg.DirectAskingRate(FSG/YR)byClass

$persq.ft.

58.00

53.00-———一——

48.00

43.0038.00

OverallClassAClassB

Source:CBREResearch,Q42025

FIGURES|CHICAGOOFFICE|Q42025

3CBRERESEARCH?2026CBRE,INC.

NetAbsorption

TheCBDrecordednearly117,000SFofnegativeabsorptioninthefourthquarterof2025,

decreasingfromthenearly58,000SFofnegativeabsorptionlastquarter.Smallerormid-sizecontractionsweredrivingthemildnegativeabsorptionnumbersinthequarter,whichdidn’tfeaturethelarge,marketshiftingmovesseeninotherrecentquarters.

LargemovesattributingtothisabsorptionareFoxtrotwhichvacated25,426SFat167NGreenStinanofficeclosure,RJO’Brienwhichvacated22,649SFat222SRiversidePlaza,Canon

Designwhichvacated21,150SFat205NMichiganAveinarenewalcontraction,andSkidmoreOwnings&Merrillwhichvacated14,189SFat224SMichiganAveinarenewalcontraction.

Notablepositivemovesfromthequarterinclude:KovitzFinancialoccupied29,170SFat10SWackerDr,BDOoccupied28,680SFat225WRandolphandAlliantInsuranceoccupied26,148SFat360NGreenSt.

Manytenantsheldtheirspacequality,within-classmovementsforbothClassAandClassBorcontractionswithinthetenants'samespace.

ConstructionActivity

919WFultonremainstobetheonlyunderconstructionbuildingintheCBD.The369,008SF

FultonMarketcreativeofficespaceisexpectedtodeliverinQ12026.Therearenonewprojectsin2026,notingthatifaprojectweretostartin2026anticipateddeliverywouldnotbeuntil

2029.

Transformativedevelopmentprojectswilleventuallyhelpsolvesupplychallengesatbothendsofthemarket.Theongoingsupplycrunchwillmakeprimedevelopmentaviablepossibilityandmeaningfulprogressonconversionprojectswilleventuallyhelpalleviatevacancyinthe

downtowncore.

Google’sThompsonCenterredevelopmentandothersymbioticprojectslikeHines’acquisitionoftheformerBoeingheadquarterswilldriveCentralLoopleasingmomentumasprogress

becomesmorevisible.Theseprojectsarealreadyshiftinginvestorperceptionandincreasing

buildingsalesintheLoopamidtheexpectationofincreasedfoottrafficandprofessionaltalent.

FIGURE4:NetAbsorptionTrend

Sq.Ft.millions

0.6

0.4

0.2

0.0(0.2)

(0.4)

(0.6)

(0.8)

(1.0)

ClassAClassBRolling4QAvg.

Source:CBREResearch,Q42025

FIGURE5:ConstructionActivity

Sq.Ft.millions

2.5

2.0

1.5

1.0

0.5

3.0

0.0

UnderConstructionDeliveries

Source:CBREResearch,Q42025

FIGURES|CHICAGOOFFICE|Q42025

4CBRERESEARCH?2026CBRE,INC.

LeasingActivity

Therewereapproximately1.5millionSFofdealscompletedinQ42025.CBDyeartodate

leasingvolumedecreasedby6%fromthe7,533,071SFvolumewitnessedin2024butisup11%fromthe2023totalvolume.ClassBperformedcompetitively,withClassAleasesclaiming50%ofleasingactivity(730,595SFfor24leases)andClassBclosebehindat48%ofleasingactivity(703,147SFfor22leases).

Newleasesledleasingvolume,attributingto59%oftotalleasingwith858,200SFofnewleasescompleted.NotablenewleasesincludeWolverine’s82,578SFdealat433WVanBurenSt,AAR’s72,000SFdealat222MerchandiseMartPlz,andZurichNorthAmericas‘s52,000SFleaseat

233SWackerDr.Renewalscontributedto41%oftotalleasingat595,412SF,withthetopdealinQ4beingUSGCorp.’s165,410SFrenewalcontractionat550WAdamsSt.

41,013

NorthMichiganAve

64,898

EastLoop

97,622

CentralLoop

FultonMarket/FarWestLoop

117,128

242,477

RiverNorth

901,730

WestLoop

FIGURE7:LeasingbySubmarket–10,000sq.ft.andup

Source:CBREResearch,Q42025

FIGURE6:LeasingActivityTrend–10,000sq.ft.andup

3.0

2.5

2.0

1.5

1.0

0.5

Sq.Ft.millions

0.0

ClassAClassB

Source:CBREResearch,Q42025

FIGURE8:KeyLeaseTransactions

TenantSq.Ft.LeasedTransactionTypeAddressSubmarket

Renewal/Contracti

165,410

USGCorp.

WestLoop

550WAdamsSt

on

Wolverine82,578NewLease433WVanBurenStWestLoop

77,666

Renewal

ArriveLogistics

WestLoop

30SWackerDr

72,000

RiverNorth

AAR

NewLease

222MerchandiseMartPlz

52,000

ZurichNorthAmerica

NewLease

WestLoop

233SWackerDr

44,457

TransloopLogistics

RiverNorth

NewLease

350NOrleansSt

36,106

LekConsulting

Renewal

WestLoop

444WLakeSt

NortonRose&Fulbright

31,953

FultonMarket/FarWestLoop

Renewal

1045WFultonMarket

Hireology30,662NewLease24EWashingtonEastLoop

McDonnellBoehnenHulbert&

Berghoff

30,434

Renewal/Contracti

on

300SWacker

WestLoop

Source:CBREResearch,Q42025

FIGURES|CHICAGOOFFICE|Q42025

5CBRERESEARCH?2026CBRE,INC.

MarketStatisticsbySubmarket

NetRentableArea

DirectVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Avg.DirectAsking

Rate(FSG/YR)

CurrentQuarterNet

Absorption

Deliveries

UnderConstruction

CentralLoop

36,423,962

29.2

30.8

28.4

2.4

42.04

(229,820)

0

0

EastLoop

24,215,601

31.4

36.9

34.3

2.5

41.61

(88,587)

0

0

FultonMarket/FarWestLoop

7,991,015

16.8

22.5

15.3

7.2

48.74

(52,966)

0

369,008

NorthMichiganAve

10,206,218

23.4

30.1

26.5

3.6

43.21

(10,018)

0

0

RiverNorth

13,265,876

35.4

36.1

32.7

3.3

50.49

110,224

0

0

WestLoop

55,507,145

22.7

28.5

24.8

3.7

48.35

154,370

0

0

Total

147,609,817

26.6

30.9

27.6

3.3

45.25

(116,797)

0

369,008

MarketStatisticsbyIndex

NetRentableArea

DirectVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Avg.DirectAsking

Rate(FSG/YR)

CurrentQuarterNet

Absorption

Deliveries

UnderConstruction

DOWNTOWN

ClassA

65,833,508

19.9

23.9

19.7

4.1

53.47

(116,945)

0

369,008

ClassB

65,062,300

33.4

38.3

35.3

3.0

43.54

(33,174)

0

0

ClassC

16,714,009

26.8

29.8

28.5

1.3

31.40

33,322

0

0

Total

147,609,817

26.6

30.9

27.6

3.3

45.25

(116,797)

0

369,008

FIGURES|CHICAGOOFFICE|Q42025

6CBRERESEARCH?2026CBRE,INC.

EconomicOverview

TheU.S.economyissendingsomemixedsignals.Financialmarketsare

focusedontheupside,particularlyAI’ssizablecontributiontogrowthin

recentquarters.Someindicatorsofbusinessactivity,suchascapitalgoodsorders,areimproving,andstrengtheningcreditmarketsarehelpingto

usherrealestateintoanewcycle.

Thepicturegetsmoremelancholywhenlookingathouseholds.Consumerconfidenceremainsweak,withspendingreportedlydrivenbyasmaller

segmentofaffluenthouseholds.ThismosaicofdatasuggeststhatannualaverageGDPgrowthwillbesteadyin2026,at2%,butatouchsofterthanin2025.Akeycatalystisasofterlabormarket,ascompaniesare‘slowtohire,slowtofire’—atrendthatislikelytolastafewquarters.A

consequenceofthisoutlookissofterinflationandlong-termbondyieldstrendingjustbelow4%byH22026.

FIGURE9:BureauofLaborandStatisticsDataChicagoMetro

FIGURES|CHICAGOOFFICE|Q42025

MarketAreaOverview

Definitions

AvailableSq.Ft.:Spaceinabuilding,readyforoccupancywithinsixmonths;canbeoccupiedorvacant.AvailabilityRate:Total

AvailableSq.Ft.dividedbythetotalbuildingArea.AverageAskingLeaseRate:Acalculatedaveragethatincludesnetandgross

leaserate,weightedbytheircorrespondingavailablesquarefootage.BuildingArea:Thetotalfloorareasq.ft.ofthebuilding,

typicallytakenatthe“dripline”ofthebuilding.GrossActivity:Allsaleandleasetransactionscompletedwithinaspecifiedtimeperiod.Excludesinvestmentsaletransactions.GrossLeaseRate:Renttypicallyincludesrealpropertytaxes,buildinginsurance,

andmajormaintenance.NetAbsorption:ThechangeinOccupiedSq.Ft.fromoneperiodtothenext.NetLeaseRate:Rent

excludesoneormoreofthe”net”costs(realpropertytaxes,buildinginsurance,andmajormaintenance)typicallyincludedinaGrossLeaseRate.OccupiedSq.Ft.:BuildingAreanotconsideredvacant.VacancyRate:TotalVacantSq.Ft.dividedbythetotal

BuildingAr