North Michigan Avenue Office Space for Lease: 2026 Costs, Buildings and Rents

Data as of October 2026 | Last updated October 17, 2026

North Michigan Avenue covers the Magnificent Mile and Streeterville, from the Chicago River north to Oak Street and east of State Street. It has the lowest vacancy of the established downtown submarkets, but it is moving the wrong way, and its Class A towers are where tenants now have the most room. North Michigan Avenue is one of seven submarkets in the Chicago CBD office market. Tenant Advisors, Inc. represents only tenants, at no cost to tenants. Call (847) 778-0296.

Key Takeaways

• Vacancy is 16.2%, up 1.4 points in a year, across about 17.1 million SF.
• The submarket lost about 520,000 SF of occupied space over the past year.
• Class A vacancy is 20.6%; Class B is only 10.9%.
• About 320,000 SF of sublease space is available.
• One small 28,700 SF building is under construction.

North Michigan Avenue Office Market Facts and Figures

Tenant Advisors tracks office buildings in the North Michigan Avenue submarket, north of the Chicago River and east of State Street, through the Magnificent Mile and Streeterville to Oak Street.

Metric	North Michigan Avenue
Total inventory	About 17.1 million SF
Class A share of inventory	About 55%
Vacancy rate	16.2% (14.8% one year ago)
Availability rate	20.7%
Net absorption, trailing 12 months	-520,000 SF
Class A asking rent	$42–$50/SF gross
Class B asking rent	$34–$40/SF gross
Free rent	About 1 month per lease year
Tenant improvement allowance	$6–$8/SF per lease year ($60–$80/SF on a 10-year lease); none on spec suites
Sublease space available	About 320,000 SF, about 1.9% of inventory
Under construction	One 28,700 SF building at 232 E. Ohio St., due late 2026
Proposed	None

Figures reflect Tenant Advisors’ market tracking of North Michigan Avenue office buildings, October 2026. Rents and concessions are Tenant Advisors’ tracked-transaction ranges, quoted full-service gross. Data is updated quarterly.

What Does Office Space Cost Per Month on North Michigan Avenue?

A 5,000 SF office on North Michigan Avenue costs about $17,500 to $20,850 a month in a Class A building and about $14,150 to $16,650 a month in Class B, before free rent. Those figures use Tenant Advisors’ tracked gross rents of $42 to $50/SF in Class A and $34 to $40/SF in Class B.

Office size	Class A, monthly ($42–$50/SF)	Class B, monthly ($34–$40/SF)
2,000 SF	$7,000–$8,350	$5,650–$6,650
5,000 SF	$17,500–$20,850	$14,150–$16,650
10,000 SF	$35,000–$41,650	$28,350–$33,350

Monthly rent before free rent and improvement allowances. Gross rent generally includes real estate taxes and building operating expenses.

Gross rent is not always the whole bill. Ask each landlord about:

• In-suite electricity, which some buildings bill separately.
• Operating expense and tax increases over the base year, which a cap can limit.
• Parking, which is usually extra downtown.
• Build-out costs above the improvement allowance, plus cabling, furniture and moving.

Is North Michigan Avenue Office Space Filling Up or Emptying Out?

Emptying out. North Michigan Avenue gave back about 520,000 SF of occupied space over the past year, and vacancy rose from 14.8% to 16.2%. The losses are concentrated in Class A towers such as FiveOneFive at 515 N. State, 444 N. Michigan and 401 N. Michigan. Class B buildings, including the Wrigley Building, are doing better.

Where Do Tenants Have the Most Leverage on North Michigan Avenue?

Building class	Inventory	Vacancy	Availability	Asking rent, gross
Class A	9.4M SF	20.6%	26.4%	$42–$50
Class B	7.6M SF	10.9%	14.1%	$34–$40
Older, smaller buildings	0.1M SF	2.3%	4.5%	Below Class B

Class A is where the leverage is. At 20.6% vacant and 26.4% available, towers such as 875 N. Michigan (49.9% vacant), 444 N. Michigan (47.3%) and FiveOneFive (45.0%) need tenants. Class B is tight at 10.9%, so tenants looking for value space here have fewer choices than in the Loop.

What Are the Most Active Office Buildings on North Michigan Avenue?

Building	Address	Size (SF)	Vacancy	12-mo net absorption (SF)
875 N. Michigan	875 N. Michigan Ave.	908,000	49.9%	+41,976
AMA Plaza	330 N. Wabash Ave.	1,517,221	18.9%	+22,094
150 E. Huron	150 E. Huron St.	92,801	27.6%	+3,098
401 N. Michigan	401 N. Michigan Ave.	747,522	20.3%	-16,848
676 N. Michigan	676 N. Michigan Ave.	163,873	22.9%	-26,136
444 N. Michigan	444 N. Michigan Ave.	517,554	47.3%	-37,955
FiveOneFive	515 N. State St.	669,346	45.0%	-97,413

Most active Class A buildings by leasing over the past 12 months. Tenant Advisors market tracking, October 2026.

Where tenants have less leverage

AMA Plaza (18.9% vacant) and 401 N. Michigan (20.3%) are the most leased large Class A buildings, and Class B overall is about 11% vacant.

Where tenants have the most room

875 N. Michigan (49.9% vacant), 444 N. Michigan (47.3%) and FiveOneFive at 515 N. State (45.0%) are about half empty and will compete hard on rent, free rent and allowances.

Active Class B buildings

Building	Address	Size (SF)	Vacancy	12-mo net absorption (SF)
Wrigley Building, North	410 N. Michigan Ave.	320,855	16.3%	+40,228
Wrigley Building, South	400 N. Michigan Ave.	188,513	26.2%	+32,057
605 N. Michigan	605 N. Michigan Ave.	90,070	12.0%	+31,265
142 E. Ontario	142 E. Ontario St.	130,296	24.8%	+14,482
680 N. Lake Shore Drive	680 N. Lake Shore Dr.	720,000	22.1%	+5,094
900 N. Michigan	900 N. Michigan Ave.	348,771	16.5%	-4,559
625 N. Michigan	625 N. Michigan Ave.	359,409	30.9%	-9,772
One Magnificent Mile	980 N. Michigan Ave.	400,000	29.5%	-27,356

Is Anything New Being Built on North Michigan Avenue?

Very little. One 28,700 SF, four-story building at 232 E. Ohio Street is under construction and due in late 2026. Nothing else is proposed, and about 530,000 SF of office space has been removed over the past five years, mostly through conversions.

How Do Building Sales Affect North Michigan Avenue Lease Deals?

401 N. Michigan Avenue sold for $132.5 million (about $177/SF) in January 2026, the largest office sale in the submarket in the past year. At the other end, Streeterville Center at 233 E. Erie sold for $2 million (about $24/SF) in September 2026. Five buildings traded in all, for about $184 million. Owners with a low basis can price space to fill it.

Which North Michigan Avenue Buildings Fit Small and Large Tenants?

Small tenants do best in buildings with suites already built out, while companies needing a full floor or more should start with the buildings carrying the largest vacant blocks. Use this as a starting list; actual suites change month to month.

Space needed	Where to start looking	Why
Under 5,000 SF	605 N. Michigan, 150 E. Huron, 142 E. Ontario	Smaller buildings with prebuilt suites
5,000–20,000 SF	Wrigley Building, 625 N. Michigan, One Magnificent Mile	Partial floors in buildings with 16% to 31% vacancy
20,000 SF and up	875 N. Michigan, 444 N. Michigan, FiveOneFive	The largest vacant blocks on North Michigan Avenue, each 45% to 50% vacant

Is There Sublease Office Space on North Michigan Avenue?

Some. About 320,000 SF of sublease space is available, about 1.9% of inventory. Sublease space usually comes built out and often furnished, and it typically prices below direct space. The remaining term is the main thing to check. See our Chicago office sublease guide.

Should You Lease, Sublease or Use Coworking on North Michigan Avenue?

Lease direct if you need space for five years or more, sublease if you want built-out space at a discount and the remaining term fits, and use coworking only for small teams that need flexibility for a year or less. About 320,000 SF of sublease space is available on North Michigan Avenue, about 1.9% of inventory.

	Direct lease	Sublease	Coworking
Typical term	5 to 10 years or more	Whatever remains on the original lease	Month to month up to 1–2 years
Cost	Market rent, with free rent and an improvement allowance	Usually below direct rent	Priced per desk or office; usually the highest cost per SF
Build-out	Custom, funded largely by the landlord	As-is, often furnished	Ready to use
Watch out for	Committing to more space than you need	Landlord consent and the short remaining term	Rate increases at renewal and limited privacy

How Much Free Rent and TI Can a North Michigan Avenue Tenant Get?

Free rent runs about 1 month per year of lease term, or about 10 months on a 10-year lease. Tenant improvement allowances run $6 to $8/SF per lease year, or $60 to $80/SF on a 10-year lease. Spec suites are delivered built and carry no allowance. For example, take an 8,000 SF Class A office at $46/SF gross on a 10-year lease. Rent is about $31,000 a month, so 10 months free is worth about $307,000. The improvement allowance adds $480,000 to $640,000 toward build-out. Together, that is about $787,000 to $947,000 in landlord-funded value on one lease.

Should You Renew or Relocate on North Michigan Avenue?

Price both before you renew. With North Michigan Avenue vacancy at 16.2%, your landlord knows what a move would cost you, and a credible relocation search is what moves the renewal offer. Start 12 to 18 months before your lease expires, or 18 to 24 months for 25,000 SF and up. See our office lease renewal negotiation and renewal vs. relocation analysis services.

What Should Tenants Negotiate on a North Michigan Avenue Office Lease in 2026?

• Rent: target the effective rent after concessions, not the asking rate. Buildings with the most vacancy leave the most room.
• Free rent: about 1 month per year of lease term, or about 10 months on a 10-year lease.
• Tenant improvement allowance: $6 to $8/SF per lease year, or $60 to $80/SF on a 10-year lease, except in spec suites. Get build-out pricing before you negotiate this number.
• Operating expense caps: 4% to 6% annually on controllable expenses.
• Flexibility: expansion, contraction and sublease rights, negotiated upfront.
• Landlord basis: in buildings that recently sold at a discount, push harder on rent and allowances.

How Does Tenant Advisors Find and Tour Space on North Michigan Avenue?

We build a shortlist from every building on North Michigan Avenue that fits your size, budget and timing, tour the best options in one block, and negotiate with several landlords at once. The landlord pays our fee, so there is no cost to tenants.

1. Requirements call: size, budget, move date and must-haves.
2. Building survey: every option that fits, including sublease space, with rents and availability.
3. Tours: your top choices scheduled back to back.
4. Competing proposals: requests to three or more landlords, compared side by side on net effective cost.
5. Negotiation and lease review alongside your attorney through signing and move-in.

Why Do Companies Lease Office Space on North Michigan Avenue?

North Michigan Avenue gives tenants a Magnificent Mile or Streeterville address with hotels, retail, the lakefront and Northwestern Memorial’s medical campus nearby. It is served by the CTA Red Line and many bus routes and has quick access to Lake Shore Drive. Many tenants are financial, professional services and healthcare firms who want a high-profile address and live nearby. Companies comparing locations often look at River North, East Loop and Central Loop as well. Our relocation and site selection service runs that comparison.

Frequently Asked Questions

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About the authors: Tom Koelzer (Co-Founder & Managing Partner, LinkedIn) and Dave Ven Horst (Co-Founder & Managing Broker, LinkedIn) founded Tenant Advisors, Inc. in 2004. Tom has worked in Chicago office leasing since 1986 and Dave since 1985, and the firm has negotiated more than 2,000 office leases, representing tenants only. Benchmark your North Michigan Avenue lease against the market: (847) 778-0296 | tkoelzer@tenantadvisors.com.

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