Chicago downtown office space vacancy rate jumps to record high levels
the downtown office vacancy rate in Chicago has surged to a record high of 28%, reflecting ongoing shifts in work patterns accelerated by the COVID-19 pandemic.Illinois Policy Institute researcher LyLena Estabine highlights that ChicagoS policymakers have struggled to adapt to these demographic and economic changes. In the last two years, companies have vacated 2.3 million square feet of office space in the Loop-almost twice the amount left empty during the 2009-2010 Great Recession. The rise in remote work has reduced demand for conventional office space, leaving downtown less vibrant outside of working hours.
Estabine suggests that the city could address these challenges by facilitating the conversion of commercial office buildings into residential spaces, following successful examples like Midtown Manhattan in New York. This approach could not only reduce vacancy rates but also help revitalize downtown into a livelier community rather than a mere commuter hub. With rising interest rates and an ongoing housing shortage in Chicago, such conversions could address multiple issues together. The city is currently considering a central area plan aimed at rejuvenating downtown and adjacent neighborhoods by 2045, with tangible effects expected in the coming years.
Chicago downtown office space vacancy rate jumps to record high levels
(The Center Square) – With Chicago’s downtown office vacancy rate now at a record-high 28%, Illinois Policy Institute researcher LyLena Estabine says city policymakers have become their own worst enemy when it comes to addressing the area’s changing demographics.
New data shows Loop vacancies ballooned over the recent third quarter as post-pandemic work trends continue to impact and impede demand. All told, companies reducing their footprint in the area over just the last two years have cost the business district 2.3 million square feet, or nearly twice the amount of space vacated during the Great Recession of 2009-2010.
“One of the problems that is being faced right now in Chicago is that for so long downtown has been centralized for businesses and now in a post-COVID world, where more and more companies realize that remote work is possible, you suddenly have people wondering what is there downtown to be offered,” Estabine told The Center Square. “There has been some return to the office, but a lot of companies are opting to remain remote. One way that the city could address this is by making it easier to have commercial to residential building conversion. This is something that New York’s Midtown Manhattan has been doing recently with a large degree of success.”
With rising interest rates also prominently figuring into the mix, Estabine adds lawmakers would be wise to act now.
“Downtown has become this place where people drive in in the mornings to go to work, then leave in the evenings,” she said. “There’s nobody in the area after they’ve left work for the day to stay and be paying customers. By looking at this as a way not to just decrease the vacancy rates but also to revitalize the downtown region can become a community and not just somewhere that people commute for work.”
BORDER PATROL CHIEF IN CHICAGO ADMITS TO LYING AS JUDGE RESTRICTS AGENCY’S USE OF FORCE
As the city also struggles with an ongoing housing crunch, Estabine adds any campaign designed to convert more Loop offices into units residents can call home could go a long way toward solving both problems.
“Chicago is considering a central area plan and what steps the city will take,” she said. “One of the priorities of this plan is to revitalize the downtown area and then the nearby surrounding areas leading up to 2045. I think it’ll start taking effect within the next couple of years.”
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
