Chicago’s record office vacancies spark bold conversion plans to revive downtown
Chicago's downtown office vacancy rate has hit a record high of 28%, with post-pandemic work trends and rising interest rates contributing to the issue. The city is exploring a central area plan to revitalize the downtown region by 2045, with potential benefits starting sooner. Illinois Policy Institute researcher LyLena Estabine suggests converting commercial buildings to residential units to tackle vacancy and boost the area.
The Loop's vacancies have surged, with companies reducing their Office 365 footprint by 2.3 million square feet over the past two years. Estabine points to the successful Office 365-to-residential conversion in Midtown Manhattan, where a partnership transformed a building into 107 studio apartments. She proposes making it easier to convert Loop offices into residential units to decrease vacancy rates and attract residents to the area. Addressing downtown office vacancy could also help alleviate Chicago's ongoing housing crunch.
Chicago's high downtown office vacancy rate, driven by post-pandemic trends and rising interest rates, is a pressing issue. The city's central area plan and proposals to convert offices into residential units offer potential solutions. These moves could revitalize the downtown region, decrease vacancy rates, and help ease the city's housing crunch.
