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Downtown Chicago’s Class B Office Stock Poised for Residential Conversion
Chicago ranks third only behind New York and Washington, DC in potential for converting class-B office to residential use, according to the National Association of Realtors. It’s a potential which an increasing number of investors and developers view with renewed interest, Crain’s Chicago Business reported.
“The pathway for a lot of these old downtown office buildings is a new lifecycle as residential,” 3L CEO Joe Slezak told Crain’s. His Rosemont, IL-based development firm has converted disused commercial buildings in Chicago and Milwaukee to residential use.
Although the idea isn’t new, Slezak sees new urgency in the wake of the pandemic, with numerous downtown office buildings likely to stand empty as workplace footprints diminish.
In recent weeks, the owners of a couple of these buildings have handed the keys back to lenders. These moves occur as downtown Chicago’s apartment and condominium market has been booming even as office faces post-pandemic headwinds.
Pictured: The Delaware Building at 36 W. Randolph St., which an investment group acquired out of foreclosure in 2018, is likely headed for repurposing as residential.
- ◦Development
