Office Footprints in the West Loop are Shrinking, but Companies on the Move are Seeking Top-Notch Spaces

Companies are shopping for new offices in downtown Chicago, and many are leasing smaller spaces.

The new pattern is taking shape as more firms finalize their post-pandemic office strategies, frequently deciding to continue allowing workers to skip commutes at least one or two days per week, cutting the overall square footage they need.

The amount of space leased on average at top properties in the West Loop, downtown’s largest and most active submarket, shrank more than 40% in 2023 and 2024 when compared with pre-pandemic deals, according to a report by CompStak and commercial real estate firm Cresa.

Not every company is shrinking its space, said Allen Rogoway, managing principal at Cresa, but with so many pre-pandemic rental agreements set to expire, he does expect new leasing to accelerate, and for many workers that will mean relocating to smaller offices.

“Companies have finally gotten their legs under them, and are starting to execute deals with conviction,” he said. “They’re now feeling comfortable with developing new workplace standards.”

The average West Loop lease for a Class A building was 30,000 square feet before COVID-19 hit but shrank to about 18,000 square feet in 2023 and 2024, Cresa found.

Read the full article in the Chicago Tribune.