(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 worse 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.”…