January 1, Chicago Office Exodus Hits New Record High

Wyatt’s Take

• Chicago’s downtown office vacancy has soared to 28%, a new all-time high.
• Major companies have left millions of square feet empty in just two years.
• Experts say converting offices to homes could bring life back downtown.

Downtown Chicago is seeing record office vacancies as 28% of workspace now sits empty. Businesses have left behind 2.3 million square feet in the Loop since 2022—almost double the space lost during the Great Recession.

Researcher LyLena Estabine explains,

“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.”

Remote work is taking hold, leaving downtown quieter than ever when workers head home. Estabine points at cities like New York, where converting old offices into housing has brought new energy to empty neighborhoods.

Estabine also points out,

“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.”

High interest rates and a housing shortage are making things worse, but turning old offices into apartments could help with both problems. Chicago leaders are now weighing a long-term central area plan meant to spark fresh life in downtown and nearby neighborhoods by 2045.

Estabine adds,

“Chicago is considering a central area plan and what steps the city will take. 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.”

Stay tuned as Chicago faces tough choices about the future of its downtown and what it means for the people who call this city home.

Wyatt Matters

Empty office towers change more than just the skyline—they shake up local jobs, businesses, and the sense of community we rely on. Solutions that help turn vacant buildings into homes could restore life and pride in our city’s heart, keeping opportunity close to the people who built it.

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