Record vacancy rates and the high cost of borrowing money are fueling a commercial real estate crisis in downtown Chicago.

In an article about the city of Chicago reviving its delayed “LaSalle Street Reimagined initiative,” which was first announced in 2022 under former Mayor Lori Lightfoot, Bloomberg CityLab reporters shine a light on the downtown’s real estate crisis.
As part of the $1 billion initiative, which was delayed by high interest rates and is expected to move forward this summer, the city is working with developers to repurpose vacant downtown buildings in the city’s central business district. The revamp is an effort to combat post-pandemic vacancy rates, which hit an all-time high in the fourth quarter of 2023 at 21.2 percent. Combined with high interest rates, it has caused commercial building sale prices to plummet by more than 50 percent, report Shruti Singh and Miranda Davis. They write that fewer than five large office buildings sold last year, with deals struck at losses ranging from 50 to 90 percent.
It’s a trend many metros across the country have been dealing with and particularly challenging as cities and developers increasingly look to repurpose office space for other uses like housing and other amenities to draw people back to their downtowns.
FULL STORY: Chicago to Go Ahead With Plan to Revamp Empty Downtown Towers

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

Chicago’s Ghost Rails
Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

Amtrak Cutting Jobs, Funding to High-Speed Rail
The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

Ohio Forces Data Centers to Prepay for Power
Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

MARTA CEO Steps Down Amid Citizenship Concerns
MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant
A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.
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