Chicago, IL Office Overview
The Chicago city proper real estate scene includes the Loop, South Loop, O'Hare, and Hyde Park commercial real estate submarkets. With a metropolitan population of over 7.3 million people, the economy of Chicagoland is firing on all cylinders and the Chicago commercial real estate market consistently sees strong office space demand from white collar employers in the financial services, engineering, publishing and food processing industries.
As of mid-2017, the Greater Chicagoland office market encompasses nearly 161 million square feet of existing office space, in properties larger than 50,000 square feet. As the most populous city in Illinois and the third-largest city in the U.S., the office market in Chicago is thriving on the robust demand for office space from the various business sectors that call the area home.
Chicago, IL Office Inventory Description
Chicago is a major world financial center and has one of the largest central business districts in the entire country. With a gross metropolitan product of just under $480 billion annually, the demand for office employment is powerful. Over 70% of the office space in Chicago is Class A, while Class B space adds another 29% of Chicago office inventory to the market.
The Loop, South Loop, O'Hare, and West Loop commercial real estate submarkets are some of the densest areas for Class A office space in Chicago, and are home to world-renowned trophy office properties such as 155 N. Wacker Drive, 440 South LaSalle, Two North Riverside Plaza, and U.S. Cellular Plaza on Bryn Mawr Avenue.
Chicago, IL Commercial Inventory Breakdown
Total: 195,125,960 SF
By square footage range:
- 50k to 100k SF: 8,188,658 SF / 4.2% of total office
- 100k to 500k SF: 48,331,531 SF / 24.77% of total office
- 500k to 1M SF: 57,834,325 SF / 29.64% of total office
- > 1M SF: 80,771,446 SF / 41.39% of total office
- Class A+: 37,543,017 SF / 19.24% of total office
- Class A: 89,830,127 SF / 46.04% of total office
- Class B: 47,765,966 SF / 24.48% of total office
- Class C: 161,236 SF / 0.08% of total office
Top 10 Largest Office Buildings
|Office building||Address||Sqft||Year built|
|Lincoln Yards||NEC West Cortland Street & North Southport Avenue, 60614||6,000,000||n/a|
|Willis Tower - Renovation||233 South Wacker Drive, 60606||4,500,000||2019|
|Willis Tower||233 South Wacker Drive, 60606||3,800,000||1973|
|The Merchandise Mart||222 Merchandise Mart Plaza, 60654||3,563,120||1930|
|Aon Center||200 East Randolph Street, 60601||2,687,933||1972|
|The Post Office||433 West Van Buren Street, 60607||2,500,000||2019|
|Chase Tower||10 South Dearborn Street, 60603||2,429,909||1969|
|CME Center - 10 & 30 South Wacker||30 South Wacker Drive, 60606||2,351,265||1983|
|300 East Randolph Street||300 East Randolph Street, 60601||2,218,838||1997|
|110 North Wacker||110 North Wacker Drive, 60606||1,789,000||2020|
Most Recently-Built Office Buildings
|Office building||Address||Sqft||Year built|
|151 North Franklin Street||151 North Franklin Street, 60606||807,355||2018|
|McDonald's Corporate Headquarters||110 North Carpenter Street, 60607||596,000||2018|
|625 West Adams Street||625 West Adams Street, 60661||438,184||2018|
|C. H. Robinson Headquarters||1515 West Webster Avenue, 60614||207,000||2018|
|165 North Aberdeen Street||165 North Aberdeen Street, 60607||202,000||2018|
|210 North Carpenter||210 North Carpenter Street, 60607||200,000||2018|
|811 Fulton Market||801 West Fulton Market, 60607||70,000||2018|
|150 North Riverside Plaza||150 North Riverside Plaza, 60606||1,178,471||2017|
|River Point||444 West Lake Street, 60605||1,081,702||2017|
|Fulton West||1330 West Fulton Street, 60607||286,800||2017|
Chicago, IL Green Office Space
Of the Top 30 Green Office Markets in the U.S., Chicago ranks #1 for energy efficient office buildings. While just over 6% of the office buildings larger than 50,000 square feet are LEED- certified, over 16% rank as Energy Star Certified and over 18% are recognized as green buildings.
The Merchandise Mart in Chicago is a stunning example of a LEED Gold-certified building: with over 3.5 million square feet of space, this Class A building was constructed in 1930 and has been updated to today's green energy office standards. As tenants, along with national and global investors seek out green certified office assets for both their use and portfolios, the green office trend will continue to grow in Chicago.
The 2017 National Green Building Adoption Index looked at commercial office properties in 30 major U.S. markets and found that, including EPA Energy Star-labeled buildings, the percentage of green certification has increased from under 5% in 2005 to 38% as of mid-2017. Chicago has placed 1st in this survey.
Chicago, IL's Top Office-Using Sectors
As a center for global business and finance, Chicago is considered one of the world's top financial centers, with the key industry sectors of financial services, food processing, and health care all creating a dynamic demand for Class A office space in the Chicagoland area.
- Financial Services – Numerous banking, financial and insurance companies, such as the Federal Reserve Bank of Chicago, the Chicago Stock Exchange, and the Chicago Mercantile Exchange create a strong demand for Class A office space in Chicago.
- Food Processing – Archer Daniels Midland, Armour and Company, and McDonalds are all headquartered in Chicago.
- Health Care – The health care industry in Chicago makes a major contribution to the economy and provides significant demand for office space, with world-renowned businesses such as Baxter International, Abbott Laboratories, and the Healthcare Division of General Electric calling the city home.
- Corporate Headquarters – The demand for white collar office space in Chicago also comes from companies such as Boeing, Kraft Heinz, and Caterpillar Inc., which are headquartered in the Chicagoland area.
- Total Population2,717,534
- Male Population(48.5 %) 1,318,494
- Female Population(51.5 %) 1,399,040
- Median Age33.70
- Average Household Income$74,003
- Median Household Income$48,522
- Median Income Under 25$25,664
- Median Income 25-44$57,801
- Median Income 45-64$51,808
- Median Income Over 65$30,347
- Archer Heights Demographics
- Austin Demographics
- Back of the Yards Demographics
- Belmont Gardens Demographics
- Bridgeport Demographics
- Brighton Park Demographics
- Chicago Loop Demographics
- Cottage Grove Heights Demographics
- Douglas Park Demographics
- Downtown Chicago Demographics
- Fulton Market Demographics
- Fulton River District Demographics
- Garfield Ridge Demographics
- Goose Island Demographics
- Heart of Chicago Demographics
- Little Village Demographics
- Near North Side Chicago Demographics
- Near West Side Demographics
- North Lawndale Demographics
- O'Hare Demographics
- Pullman Demographics
- River North Demographics
- South Deering Demographics
- South Loop Demographics
- Streeterville Demographics
- West Garfield Park Demographics
- West Humboldt Park Demographics
- West Loop Demographics
Office Building of the Week: Merchandise Mart, Chicago
February 13, 2019
Located at the junction of the Chicago River’s two main branches, Merchandise Mart has been one of the most iconic buildings on the Windy City skyline since its construction was finalized in 1930. With over 4 million square feet of floor space spanning two city blocks and boasting 25 stories, it...
Company Spotlight: Sterling Bay
February 05, 2019
Today’s article shines light on one of the leading real estate investment firms in Chicago, namely Sterling Bay Companies LLC. The corporation is based in Windy City and started out in 1986 with only its two founders, Craig Golden and Scott Goodman, at its helm. The entire business venture began...
Office Building of The Week: Wrigley Building, Chicago
January 30, 2019
The twin towers of the landmark Wrigley Building, constructed by chewing gum magnate William Wrigley Jr. as the company headquarters, are the gateway to the magnificent mile. Check out more about this week’s selected office building.