State of the Chicago Office Market: Sublease Activity at 110 North Wacker Drive

Chicago’s office market remains under pressure in 2025, with new sublease listings at even the most prestigious buildings signaling ongoing challenges. At 110 North Wacker Drive, one of downtown’s top-tier properties, a new sublease offering highlights the continued recalibration in the demand for Chicago office space.

Perkins Coie, a major tenant at the property, has listed 46,000 square feet for sublease, covering a fully built-out floor and an unfinished floor. This move underscores that even in trophy assets, tenants are rethinking long-term space needs post-pandemic.

Trophy Assets Face New Realities

110 North Wacker Drive, developed by Riverside Investment & Development and the Howard Hughes Corporation, was expected to outperform amid market turbulence. Yet the new sublease offering shows that even premier towers are not immune to broader trends. Companies are adjusting footprints in response to hybrid work models, cost control priorities, and rising construction expenses.

While positive absorption was recorded downtown for the first time in nearly two years, sublease inventory still totals over 5.6 million square feet. Even buildings like 110 North Wacker must now compete against discounted, move-in-ready secondary space.

Chicago Office Space: Challenges and Opportunities

The ongoing shift creates both risks and opportunities. For tenants, there has rarely been a better chance to secure prime Chicago office space on favorable terms, primarily through subleases that avoid long buildout timelines and escalating construction costs.

Navigating this environment requires expertise. A seasoned commercial real estate agent in Chicago can help tenants evaluate options, negotiate strong deals, and avoid hidden pitfalls.

The Road Ahead for Downtown Chicago

110 North Wacker’s situation is a microcosm of the broader market. Top properties still hold appeal but face growing competition from discounted subleases and evolving tenant expectations. Success in the coming years will hinge on flexibility, creativity, and a deep understanding of what tenants want now, not what they wanted five years ago.

The Chicago office space market is still very much in transition. Those who adapt quickly will be best positioned to thrive in this new environment.

If you’re reassessing your Chicago office needs for 2025 and beyond, now is the time to act. Our team of commercial real estate agents in Chicago is ready to assist you.