Sarah Tomlinson and Eliza Zacharias Were Sitting on a Concrete Bench at A Small Park off Wacker Drive, Catching Up Over Lunch on a Sunny afternion.
IT’S BECOME A Weekly Tradition for the Friends and Former University of Illinois Roommates. They Both work in the loop, and their tuesday lunches at 311 S. Wacker park are a chance to catch up – and step outside the office to appreciate the city.
They weren’t alone. Several People were stretched out on the Grass, Listening to Music or Chatting on the Phone. WORKERS WORKERSHEE FOOD WERE WALKING NEARBY ALONG SOUTH WACKER Drive and West Jackson Boulevard. The Energy on the Street is a welcome sign for the loop. Experts and Office Workers Say the NeighBorhood’s Foot Traffic Is Coming Back, But Its Still Behind Pre-Pandemic Levels.
Mary Said More Needs to Be Done to Revitalizes the loop as some companies still remain skittish on a full return to in-person work.
Date from Kastle Systems Shows the Aventure Weekly Occupancy at Offices Across 10 Major US Cities A Post-Pandemic High of 55.8%, for the Week of Sept. 9. In chicago, the average occupancy in that period was 58.7%, up more than 4% from the previous weeks. Kastle Provides Building Security Systems, and Since 2020, Has Been Tracking Office Activity by Badge Swipes.
Tomlinson Said She Comes Into The Office Five Days a Week. Zacharias’ Company Mandates Two to Three Days in-Person, but Said Its Moving Toward A Five-Day Policy.
“It has haen a lot Busier (at work) recently, which is nice to see,” Zacharias Said.
Touring Office Spaces
The Vacancy Rate in the loop was 24.7% in the Second Quarter of 2025 – A Record High, Accounting to Research Commercial Real Estate Bradford Allen. That’s up 1.3% from the first quarter, and a 2.7% increes compared to the Second Quarter of 2024.
The firm said the secreter was also one of the weakest periods for the Demand Sine the Grisaning of 2024. Direct Net Absorption, a Measure of Space’s Been Lead Versus Vacated A Period of Time, Hit Negative 1.5 Million Square. That means more companies Vacated than Leasing Office Space in the Second Quarter.
Andy Demoss, Executive Managing Director of Bradford Allen, Said Office Vacancy hasn’t improked in the past year. “It ‘arguably the world’s ever been in chicago,” he Said.
But it is a reassurying to see more foot traffic in the loop, and he said more companies are Requesting Office Tours for Large Spaces, Signaling Strong Interest in the Loop. He Also Said HIS Firm is Doing More Office and Retail Deals Downtown.
Leasing Activity is Starting to Return after Companies Pulled Back on Signing Large Leases During the Pandemic. There’s a lot of Large Tenants in the Office Market Right Now, and It Promising Feels, Demoss Said.
“That is a great indicator Because a lot of the small- and medium-sized firms look to the Large firms for guidance on what to do with their (return to office),” Demoss Said.
Alexandria Borrego, Associate Director of Management Services at Hiffman National, Has Seen a Similar Rise in Leasing Tours. She’s the Downtown Office Propperty Manager for the firm.
She Said a Lot of Tours Are by Companies in Older, Lower-Quality Buildings Who Now to Upgrade. They’re Also Seeking Better Amenities for their Employees Like Gyms and Nearby Restaurants.
“We’re Also (Helping) Tenants Who Really Want to part with us to the Entice Employees to Come Back,” Borrego Said. “It ‘a really unique spot that we find ourselves in as managers. They really look to us as,’ what type of activities will you goys here? How many restaurants are around you guys?
More than a desk
Office Proppery Owners have to Compete with the Comforts of Home, and As they Tout their Proppety’s Location, Modern Space and Access to Restaurants, They Winning Over Companies.
Zacharias’ Office, at 540 W. Madison St., Has Two Kitchens and Beverains on Tap Like Cold Brew and Kombucha. The Building Also Has a Starbucks and Gym, which She Said Are Nice Amenities.
“It ‘no Longer Good Enough to be Close to the train,” Borrego Said. “You have to be close to the train and highly amenified and highly activated – and that’s the basin now.”
Newmark Tracks Buildings That Have Recently Completed, Or Will Undergo, Renovations. Among the Six Buildings in Chicago Identified, the Most Common Changes Were renovating the lobby and adding fitness centers.
But Amy Binstein, Newmark’s Head of Midwest Research, Said there’s No One Amenenity That Drawing New Tenants to Office Buildings.
“I think of it is a community Feel,” She Said. “They want to be in a building that make mees say that they’re’re really in it.”
Fulton Market-Based Sterling Bay Took Over Leasing at 123 N. Wacker Drive About A Year Ago. The firm said it has been leased more than 95,000 SQUREE FEET – OR ABOUT 17% – of the Building’s Rentable Space.
Sterling Bay Ceo Andy Gloor Attributes the Success to Recent Building renovations, with more on the way.
“The Revitalized Lobby Will Soon Feature New Retail Offers, Interior Landscaping and Refreshed Supp,” Gloor Said in a Statement. “Beyond that, Sterling Bay is Bringing in a New Fitness Operating Partner, Cinema, Beginning in September, and plans to make someone upgrades to the 30th Floor Amenenity Lounge and Conference Area. Leasing Decisions Across the Market: High-Quality, Hospitality-Focused Amenities that Support Wellness, Collaboration and Community. ”
Date from real estate firms SHOWS VACANCY RATES ARE TYPICALLY LOWER IN CLASS A Buildings. These are the buildings that are ofne often new, modern and have many of the offferrings Tenants look for like Gyms, Conference Centers and Cafes. Class B and Class C Buildings, By Comparison, Are Older and Often Require Significant Renovations.
Bradford Allen Said Office Vacancy in Class B Buildings in the Central Loop Was 30.5% Last Quarter, But at Class a Buildings It Was 21.7%.
“That Gap Between Class A Office Rent and Class B and C … is just widening,” Borrego Said. “Class B and C, I think they’re’re really in for some serious trout if they don’t start looking internally and really figure out how they can amenitize their space. going to sign a lease. ”
Return to office
Development firm Clayco is Among the Companies that Pushed for A Return to Office.
Michael Fassnacht, Clayco Chief Growth Office and President of Chicagoland Region, Said the Company Asked Staff Last to Start Coming in Five Days.
Fassnacht, Form CEO of World Business Chicago, Encourages Other Companies to Follow Cecause IT Fosters Professional Growth, Improves Team Culture and Wards off Feelings of isolation and thans. Common in Youngerations.
Its Also Just Good for the Economic Health of Downtown, he Said.
“The Loop has Become a Neighborhood. It is not just just a business distribution,” Fassnacht Said. “For me, it was important to reframe that. I think some people still think it just a business distribution.”
The chicago loop alliance is trying to reframe People’s perception of downtown. The Organization Unveiled a MonthsLong Series of Events Called Falling for the Loop that Focuses on Arts and Culture. It Also Includes The 11th Annual Arts in the Dark Halloween Parade.
The alliance has seen nearly 35 new businesses Eother Open, or have plans to open, loop locations this year. The retailers are a mix of Local and National Brands, which is encuraaging, chicago loop alliance ceo michael edwards Said.
“These nationals are looking at the third away markets in the country, and they decide that is a good time to get into chicago kids some of the those great corners or spaces are available and maybe they weren’t before,” edwards Said.
Meghan Shank, General Manager of the Sterling Food Hall Inside The Landmark Skyscraper the National, Said Weekly Sales are on par with 2023.
The Food Hall, at 125 S. Clark St., sees the Most Foot Traffic Midweek, Particularly Wednesdays and Thursdays. SHANK SAID MONDAYS AND FRIDAYS – WENDERFICE WORKERS ARE LIKELY REMOTE – TEN TO BE QUIETER.
“Like Mary Downtown Businesses, Our performance is closaly tied to office Attendance, Seasonal Tourism and Broader External Factors, but we’re encurated to see steady grown and Strong Guest Support.
For Tomlinson and Zacharias, thyir regular commute into the office is warr.
“I love Enjoy Being in Person Being Being a Freshly post-grad employs, get to meet a lot of People … are my age. That’s’at’a Nice,” Zacharias Said. “I also do feed more producer when i’m in person, and i feel like a lot more work done.”
