The office industry in Chicago is still experiencing changes as vacancy rates struggle to settle after the disruptions of 2020. Amid the ongoing recovery , transactions are still taking place. However, tenants and their brokers are more inclined to take their time and seek the right deals that align with their long-term goals.
Numerous spaces and buildings are offering concessions and enhanced amenities to make their properties more attractive. In this environment, owners, property managers, and construction firms are shaping the future of office and mixed-use buildings in Chicago.
Ramiro Trevino, vice president of construction, Urban Innovations
Several buildings in Chicago have changed ownership, leading to significant investments and revitalization. For instance, the Chicago Board of Trade (CBOT) building has undergone substantial improvements to reinvigorate this anchor financial district and attract new tenants. Opportunities for redevelopment are available but finding them may require more effort. Difficulty in obtaining financing is making sourcing and starting these opportunities more challenging.
Many companies in Chicago have adopted a more hybrid or flexible approach to work in the past few years, which has changed how much space they need and how they use it. Work-from-home flexibility has also put pressure on more traditional workplaces that need employees in the office more often.
Many financial and legal firms aim to attract young talent and enhance their existing workplace culture. While attracting talent is crucial, fostering a workplace environment that encourages employees to return to office is equally important. Firms are seeking Class-A spaces or upgrading their current ones. Tenants prioritize providing the best possible spaces and amenities for their employees.
For example, Urban Innovations recently built out a space for Consumers Credit Union where 25% of the total square footage was dedicated to amenities. In a 140,000-square-foot building, this included a state-of-the-art gym with locker rooms and showers, a full-service kitchen, a speakeasy café, a game lounge area, an outdoor patio, and more.
While the office outlook may be muddled for the near future, some recent positivity in Chicago has been the retail renaissance in some Chicago neighborhoods. Flagship stores are continually entering the market, with Fulton Market remaining a highly attractive location for retailers. New restaurants and wellness/spa services are opening up, highlighting the area’s growth.
Urban Innovations recently completed the Fjällräven flagship store in Fulton Market and the Ina Spa in River North. The boost these businesses provide to foot traffic may prove to help draw workers back to these neighborhoods, too. One factor that is a constant in commercial real estate is that urban populations are drawn to locations that offer a mix of activities – work, pleasure, and convenience. Urban Innovations is dedicated to contributing to these spaces through the construction and craftsmanship that elevate the well-being of those who inhabit them.
As Vice President of Construction, Ramiro Trevino leads the General Construction department at Urban Innovations. His team has completed multiple tenant improvements, capital improvements, adaptive reuse, residential developments, along with multiple retail spaces for his clients. Ramiro’s experience along with his team can handle any type of job large or small. Ramiro is a graduate of UIC School of Architecture and holds a master’s degree in business administration from Krannert School of Management at Purdue University.
