South Loop Office Space: 2026 Market Guide for Tenants

Data as of October 2026 | Last updated October 15, 2026

The South Loop is the smallest office submarket downtown, about 2.8 million SF of mostly older loft and mid-rise buildings around Printer’s Row, South Dearborn and South Wabash. The headline vacancy is high, but most of it sits in one large building; the rest of the market is much tighter. South 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 32.0%, down 2.4 points in a year, across about 2.8 million SF.
• Nearly all of the vacancy is in one large Class A property, about 682,000 SF and about 94% empty.
• Class B vacancy is only about 12%, so good loft space does not sit long.
• Rents are the lowest in downtown Chicago.
• Nothing is under construction.

South Loop Office Market Facts and Figures

Tenant Advisors tracks office buildings in the South Loop, south of Congress Parkway to about Roosevelt Road, including Printer’s Row and the South Wabash and South Michigan Avenue corridors.

Metric	South Loop
Total inventory	About 2.8 million SF
Class A share of inventory	About 24%
Vacancy rate	32.0% (34.4% one year ago)
Availability rate	32.8%
Net absorption, trailing 12 months	+66,000 SF
Class A asking rent	$34–$40/SF gross
Class B asking rent	$26–$32/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	Limited
Under construction	None
Proposed	None

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

Is South Loop Office Space Filling Up or Emptying Out?

Slowly filling. The South Loop absorbed about 66,000 SF over the past year, and vacancy fell from 34.4% to 32.0%. The number is skewed by one large, mostly empty Class A property. Without it, vacancy in the rest of the submarket is about 12%.

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

Building class	Inventory	Vacancy	Availability	Asking rent, gross
Class A	0.7M SF	93.9%	93.9%	$34–$40
Class B	1.8M SF	12.0%	13.2%	$26–$32
Older, smaller buildings	0.3M SF	11.6%	11.6%	Below Class B

The South Loop is two markets. One large Class A property is almost entirely vacant and will deal aggressively for a large tenant. The rest of the submarket, mostly Class B loft and mid-rise buildings, is about 12% vacant, so tenants have fewer choices, but rents are the lowest downtown.

Where tenants have less leverage

Class B and loft buildings are about 12% vacant. Well-built-out suites in the Printer’s Row and South Wabash buildings lease quickly.

Where tenants have the most room

The submarket’s only Class A office property, about 682,000 SF, is about 94% vacant and is the obvious target for a tenant that needs a large block south of Congress Parkway.

Active Class B buildings

Building	Address	Size (SF)	Vacancy	12-mo net absorption (SF)
800 S. Wells	800 S. Wells St.	253,085	28.7%	+9,152
1132 S. Wabash	1132 S. Wabash Ave.	39,600	0%	+636

Is Anything New Being Built in the South Loop?

No. Nothing is under construction or proposed, and the South Loop has not had a new office building in more than a decade. New development in the area is residential.

How Do Building Sales Affect South Loop Lease Deals?

A handful of South Loop office buildings traded over the past year, about $12.7 million in total. 542 S. Dearborn sold for about $5.8 million (about $65/SF), 601 S. LaSalle for about $3.3 million (about $47/SF) and 850 S. Wabash for about $2.5 million (about $57/SF). Low purchase prices let owners keep rents low.

Is There Sublease Office Space in the South Loop?

Very little. The South Loop is small and most available space is offered directly by landlords. Tenants looking for sublease space usually widen the search to the Central and East Loop.

How Much Free Rent and TI Can a South 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 an 8,000 SF Class B office at $29/SF gross on a 10-year lease. Rent is about $19,000 a month, so 10 months free is worth about $193,000. The improvement allowance adds $480,000 to $640,000 toward build-out. Together, that is about $673,000 to $833,000 in landlord-funded value on one lease.

Should You Renew or Relocate in the South Loop?

Price both before you renew. With South Loop vacancy at 32.0%, 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 South 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.

Why Do Companies Lease Office Space in the South Loop?

The South Loop offers the lowest office rents downtown with quick access to the Loop, Grant Park and the museum campus. It is served by the CTA Red, Orange and Green lines, Metra at LaSalle Street Station and Roosevelt Road, and the Dan Ryan and Eisenhower expressways. Companies comparing locations often look at Central Loop, East 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 South Loop lease against the market: (847) 778-0296 | tkoelzer@tenantadvisors.com.

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