Chicago is a compelling market for commercial real estate occupiers and investors due to its diverse economy, strategic location, and strong talent pool. The city’s appeal is evident in its status as a corporate hub, boasting 32 Fortune 500 headquarters and nearly 450 corporate expansions and relocations since 2022. The Chicago area saw the greatest number of new or expanded corporate facilities in the United States over the past decade, according to Site Selection magazine.
As the nation’s third-largest city with a metropolitan area population of approximately 9.5 million, Chicago is one of its most important financial, industrial, and cultural centers. The city’s strong and stable economy is supported by a base of 4.8 million highly skilled workers and a gross regional product of more than $834 billion. Businesses in Chicago benefit greatly from the sizable and concentrated pool of specialized services and highly educated employees.
Nearly 40 percent of Chicago’s population above age 25 has attained a bachelor’s degree or higher, which exceeds the 34 percent national average. More than half of the city’s population is made up of millennials and gen Zers—a key indicator of future economic growth.
Chicago’s accessibility and growth are largely driven by its excellent transportation network, highlighted by its two international airports, and extensive public transportation system. O’Hare International is one of the world’s busiest and largest airports and is currently undergoing a $6.6 billion modernization program. Midway International Airport completed an extensive $800 million expansion and renovation over the past several years. On the ground, the Chicago Transit Authority is one of the country’s top public transportation systems in terms of both size and ridership.
Chicago’s office market, while still challenged in the wake of the pandemic, is driven by a diverse group of industries. The city’s overall office vacancy rate remains elevated at 25.5 percent, but the rate for prime space is just 15.9 percent. A dwindling construction pipeline will further tighten availability of prime space, which should prompt renewed interest in office development. At the same time, lower-tier buildings will increasingly undergo redevelopment or demolition, which will further help restore supply-demand balance. Trailing-four-quarter leasing activity as of Q2 2025 was up by 26 percent year-over-year and by 111 percent from the pandemic-era low.
—CBRE
