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

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

The East Loop runs from State Street to the lakefront, with Millennium Park, Michigan Avenue and Illinois Center at its core. It has some of the most recognizable towers in the city and some of the highest vacancy downtown, which makes it one of the strongest negotiating positions for tenants in the CBD. East 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 27.4% across about 30.5 million SF, roughly flat over the past year.
• The submarket lost about 213,000 SF of occupied space over the past year.
• Class A and Class B vacancy are both 27% to 30%, so leverage runs across the whole market.
• About 720,000 SF of sublease space is available.
• Nothing is under construction.

East Loop Office Market Facts and Figures

Tenant Advisors tracks office buildings in the East Loop, from State Street east to Lake Michigan and from the Chicago River south to Congress Parkway, including Illinois Center and Lakeshore East.

Metric	East Loop
Total inventory	About 30.5 million SF
Class A share of inventory	About 51%
Vacancy rate	27.4% (27.2% one year ago)
Availability rate	29.6%
Net absorption, trailing 12 months	-213,000 SF (five-year average about -650,000 SF a year)
Class A asking rent	$46–$54/SF gross
Class B asking rent	$32–$38/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 720,000 SF, about 2.3% of inventory
Under construction	None
Proposed	None; about 290,000 SF of office space removed over five years

Figures reflect Tenant Advisors’ market tracking of East 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 East Loop?

A 5,000 SF office in the East Loop costs about $19,150 to $22,500 a month in a Class A building and about $13,350 to $15,850 a month in Class B, before free rent. Those figures use Tenant Advisors’ tracked gross rents of $46 to $54/SF in Class A and $32 to $38/SF in Class B.

Office size	Class A, monthly ($46–$54/SF)	Class B, monthly ($32–$38/SF)
2,000 SF	$7,650–$9,000	$5,350–$6,350
5,000 SF	$19,150–$22,500	$13,350–$15,850
10,000 SF	$38,350–$45,000	$26,650–$31,650

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 East Loop Office Space Filling Up or Emptying Out?

Still soft. The East Loop gave back about 213,000 SF of occupied space over the past year, and vacancy edged up to 27.4%, close to its 27.5% peak. One Prudential Plaza alone lost about 243,000 SF. Commuters coming from the west-side Metra stations have a longer walk here than to the West Loop, and that keeps pressure on landlords to compete on price and building quality.

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

Building class	Inventory	Vacancy	Availability	Asking rent, gross
Class A	15.7M SF	27.0%	30.0%	$46–$54
Class B	12.0M SF	29.6%	30.5%	$32–$38
Older, smaller buildings	2.8M SF	20.1%	23.6%	Below Class B

Leverage runs across both classes. Class A vacancy is 27.0% and Class B is 29.6%, and availability is about 30% in each. Large Class A towers such as Aon Center, One East Wacker and the Prudential Plaza buildings are carrying big blocks, and Class B buildings along Michigan and Wabash avenues have suites from a few thousand SF up. Tenants who put two or three East Loop buildings in competition should expect strong concessions.

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

Building	Address	Size (SF)	Vacancy	12-mo net absorption (SF)
The Jewelers Building	35 E. Wacker Dr.	556,200	30.3%	+41,490
The Diamond	150 N. Michigan Ave.	661,477	38.4%	+24,484
Michigan Plaza	225 N. Michigan Ave.	978,696	34.1%	+23,050
Two Prudential Plaza	180 N. Stetson Ave.	1,477,600	27.0%	+13,943
One East Wacker	1 E. Wacker Dr.	560,000	45.8%	+10,810
The Monroe Building	104 S. Michigan Ave.	243,166	50.8%	+6,300
333 S. Wabash	333 S. Wabash Ave.	1,206,741	14.0%	0
24 E. Washington	24 E. Washington St.	1,228,386	16.0%	0
303 E. Wacker	303 E. Wacker Dr.	943,581	26.9%	-5,008
Aon Center	200 E. Randolph St.	2,777,959	33.8%	-65,398
One Prudential Plaza	130 E. Randolph St.	1,235,935	22.8%	-243,156

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

Where tenants have less leverage

333 S. Wabash (14.0% vacant) and 24 E. Washington (16.0%) are the tightest large Class A buildings in the East Loop. Landlords there concede less.

Where tenants have the most room

One East Wacker (45.8% vacant), The Diamond at 150 N. Michigan (38.4%), Michigan Plaza (34.1%) and Aon Center (33.8%) all have large amounts of space to fill and are competing hard for tenants.

Active Class B buildings

Building	Address	Size (SF)	Vacancy	12-mo net absorption (SF)
30 N. Michigan	30 N. Michigan Ave.	222,000	19.6%	+11,207
200 S. Michigan	200 S. Michigan Ave.	371,566	54.5%	+9,262
17 N. State	17 N. State St.	385,000	25.3%	+7,545
Willoughby Tower	8 S. Michigan Ave.	212,200	19.1%	+7,405
25 E. Washington	25 E. Washington St.	360,650	16.2%	+4,903
11 E. Adams	11 E. Adams St.	155,800	52.8%	+1,452
333 N. Michigan	333 N. Michigan Ave.	290,104	36.6%	-395
180 N. Michigan	180 N. Michigan Ave.	240,320	52.6%	-9,070
Two Illinois Center	233 N. Michigan Ave.	1,124,336	75.1%	-9,854

Is Anything New Being Built in the East Loop?

No. Nothing is under construction or proposed, and about 290,000 SF of older office space has been removed over the past five years. Landlords are competing by renovating lobbies, amenity floors and spec suites rather than building new.

How Do Building Sales Affect East Loop Lease Deals?

East Loop office buildings are trading at very low prices. About 16 properties changed hands over the past year for about $27 million in total, mostly smaller buildings and condo units. 70 E. Lake Street sold for $9.2 million (about $65/SF) in July 2026, and the nearly empty 401 S. State Street sold for $4.2 million, under $9/SF. Low purchase prices give new owners room to cut rent to fill space.

Which East 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	Willoughby Tower, 30 N. Michigan, 25 E. Washington	Class B buildings with prebuilt suites and lower rents
5,000–20,000 SF	The Jewelers Building, 17 N. State, 333 N. Michigan	Partial floors in buildings with 25% to 37% vacancy
20,000 SF and up	Aon Center, Two Illinois Center, One East Wacker, 200 S. Michigan	The largest vacant blocks in the East Loop and the strongest concessions

Is There Sublease Office Space in the East Loop?

Yes. About 720,000 SF of sublease space is available, about 2.3% 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 in the East 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 720,000 SF of sublease space is available in the East Loop, about 2.3% 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 an East 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 $50/SF gross on a 10-year lease. Rent is about $42,000 a month, so 10 months free is worth about $417,000. The improvement allowance adds $600,000 to $800,000 toward build-out. Together, that is about $1,017,000 to $1,217,000 in landlord-funded value on one lease.

Should You Renew or Relocate in the East Loop?

Price both before you renew. With East Loop vacancy at 27.4%, 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 an East 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 East Loop?

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

The East Loop faces Millennium Park and Grant Park, with Michigan Avenue retail, hotels and cultural institutions at the door. It is served by Millennium Station (Metra Electric and South Shore Line) and several CTA lines, and it holds some of the largest towers in Chicago. Companies comparing locations often look at Central Loop, North Michigan Avenue, South Loop and West 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 East Loop lease against the market: (847) 778-0296 | tkoelzer@tenantadvisors.com.

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