Central Loop Office Space for Lease: 2026 Costs, Buildings and Rents

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

The Central Loop is the historic financial core of downtown Chicago, anchored by LaSalle Street, State Street and Wacker Drive. It is one of the softest Class A markets downtown: the best-located towers are close to full, but several large Class A and Class B buildings are a third to half empty and competing hard for tenants. Central Loop 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 22.4%, down 1.5 points in a year, across about 47.5 million SF.
• Class A vacancy (28.7%) is higher than Class B (19.5%), so Class A landlords are the ones competing hardest.
• About 870,000 SF of sublease space is available.
• Nothing is under construction, and older buildings along LaSalle Street are being converted to apartments.
• Several office towers sold at deep discounts in the past year, which lowers what those owners need in rent.

Central Loop Office Market Facts and Figures

Tenant Advisors tracks office buildings in the Central Loop, from Wells Street east to State Street and from Wacker Drive south to Congress Parkway, including the LaSalle Street corridor.

Metric	Central Loop
Total inventory	About 47.5 million SF
Class A share of inventory	About 33%
Vacancy rate	22.4% (23.9% one year ago)
Availability rate	25.4%
Net absorption, trailing 12 months	+38,000 SF (after about -1.2 million SF in 2025)
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 870,000 SF, about 1.8% of inventory
Under construction	None
Proposed	None; about 1 million SF of older office space has been removed or converted over five years

Figures reflect Tenant Advisors’ market tracking of Central Loop 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 in the Central Loop?

A 5,000 SF office in the Central Loop 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 Central Loop Office Space Filling Up or Emptying Out?

Stabilizing. The Central Loop added about 38,000 SF of occupied space over the past year after losing about 1.2 million SF in 2025, and vacancy has fallen from a 25.3% peak in early 2026 to 22.4%. Part of that improvement comes from removing space: about 610,000 SF of office inventory came out of the market in 2026 through conversions. Google’s planned move into the redeveloped Thompson Center at 100 W. Randolph Street is the biggest single demand story in the submarket.

Where Do Tenants Have the Most Leverage in the Central Loop?

Building class	Inventory	Vacancy	Availability	Asking rent, gross
Class A	15.4M SF	28.7%	33.3%	$42–$50
Class B	31.8M SF	19.5%	21.7%	$34–$40
Older, smaller buildings	0.3M SF	6.3%	15.2%	Below Class B

Unlike most downtown submarkets, Central Loop Class A is emptier than Class B. At 28.7% vacant and 33.3% available, Class A towers such as 77 West Wacker, 70 W. Madison, 181 W. Madison and 425 S. Financial Place carry large blocks and are the most motivated landlords downtown. Class B buildings on LaSalle Street have tightened as some were taken off the market for conversion, but several still sit 40% to 55% vacant.

What Are the Most Active Office Buildings in the Central Loop?

Building	Address	Size (SF)	Vacancy	12-mo net absorption (SF)
77 West Wacker	77 W. Wacker Dr.	960,000	37.6%	+317,167
120 N. LaSalle	120 N. LaSalle St.	489,925	12.5%	+23,610
70 W. Madison	70 W. Madison St.	1,439,574	37.3%	+19,996
One South Dearborn	1 S. Dearborn St.	827,059	4.0%	+17,241
161 N. Clark	161 N. Clark St.	1,068,877	11.1%	-470
203 N. LaSalle	203 N. LaSalle St.	625,000	28.6%	-60,483
Chicago Board of Trade	141 W. Jackson Blvd.	1,392,875	17.4%	-84,008
190 South LaSalle	190 S. LaSalle St.	798,782	21.7%	-89,291
425 S. Financial Place	425 S. Financial Pl.	1,041,150	38.1%	-126,283
181 West Madison	181 W. Madison St.	952,559	31.3%	-208,027

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

Where tenants have less leverage

One South Dearborn (4.0% vacant), 1 N. Dearborn (6.8%), 161 N. Clark (11.1%) and 120 N. LaSalle (12.5%) are close to full. Landlords there concede less.

Where tenants have the most room

77 West Wacker (37.6% vacant), 70 W. Madison (37.3%), 425 S. Financial Place (38.1%) and 181 W. Madison (31.3%) are large Class A buildings with big blocks to fill. They are competing directly with West Loop towers for the same tenants.

Active Class B buildings

Building	Address	Size (SF)	Vacancy	12-mo net absorption (SF)
222 North LaSalle	222 N. LaSalle St.	1,018,838	5.9%	+69,403
200 N. LaSalle	200 N. LaSalle St.	643,323	19.3%	+60,380
33 N. LaSalle	33 N. LaSalle St.	415,309	28.0%	+51,912
30 N. LaSalle	30 N. LaSalle St.	988,000	46.6%	+29,680
The National	125 S. Clark St.	507,000	49.9%	+12,980
Ten South LaSalle	10 S. LaSalle St.	819,481	52.1%	-24,245
111 W. Jackson	111 W. Jackson Blvd.	567,531	54.5%	-49,580
175 W. Jackson	175 W. Jackson Blvd.	1,474,784	40.0%	-114,277

Is Anything New Being Built in the Central Loop?

No. Nothing is under construction or proposed, and the Central Loop has lost about 1 million SF of office space over the past five years as older buildings, mostly along LaSalle Street, are converted to apartments and other uses. Less supply should help vacancy keep falling, but it will not create new options for tenants who want new construction.

How Do Building Sales Affect Central Loop Lease Deals?

Central Loop office buildings have been trading at a fraction of their former values. Twelve buildings sold over the past year for about $509 million, an average of about $67/SF. 131 S. Dearborn sold for $137 million (about $89/SF) in June 2026, 161 N. Clark for $125 million (about $117/SF), 180 N. LaSalle for $56.5 million (about $66/SF), 175 W. Jackson for $41 million (about $28/SF) and 55 W. Monroe for $24 million (about $25/SF). An owner who bought at these prices can offer lower rent and larger allowances and still make money. Before negotiating, find out who owns the building and what they paid.

Which Central Loop 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	33 N. LaSalle, 200 N. LaSalle, 203 N. LaSalle	Class B towers with prebuilt suites and active leasing
5,000–20,000 SF	190 South LaSalle, 181 West Madison, The National	Partial floors in buildings with 22% to 50% vacancy
20,000 SF and up	30 N. LaSalle, Ten South LaSalle, 111 W. Jackson, 175 W. Jackson	The largest vacant blocks in the Central Loop, with 40% to 55% vacancy

Is There Sublease Office Space in the Central Loop?

Yes. About 870,000 SF of sublease space is available, about 1.8% of the submarket’s 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 in the Central Loop?

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 870,000 SF of sublease space is available in the Central Loop, about 1.8% 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 Central Loop 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 a 10,000 SF Class A office at $46/SF gross on a 10-year lease. Rent is about $38,000 a month, so 10 months free is worth about $383,000. The improvement allowance adds $600,000 to $800,000 toward build-out. Together, that is about $983,000 to $1,183,000 in landlord-funded value on one lease.

Should You Renew or Relocate in the Central Loop?

Price both before you renew. With Central Loop vacancy at 22.4%, 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 Central Loop 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 in the Central Loop?

We build a shortlist from every building in the Central Loop 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 in the Central Loop?

The Central Loop sits between Union Station, Ogilvie and the LaSalle Street and Millennium stations, with nearly every CTA rail line running through it. It is home to the city’s financial district, government and courts, and a dense base of law, finance and professional services firms. Companies comparing locations often look at West Loop, East Loop, South Loop and River North 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 Central Loop lease against the market: (847) 778-0296 | tkoelzer@tenantadvisors.com.

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