The area known as the Chicago Loop has been a hub of commerce and civic life since the founding of Fort Dearborn in 1803. After the Great Chicago Fire of 1871, the construction of some of the world’s earliest skyscrapers and the establishment of rapid transit (tracks which “loop” around the central business district) allowed for a thriving global business district.
Followed by the 1909 Plan of Chicago, a critical influence on the field of city planning, the overall vision for the city was to seamlessly blend commerce with natural amenities like the lakefront of Lake Michigan. By preserving the natural lakefront for recreation and the public good, the Loop has long been observed as a human-centric place to live and work.
In recent years, continued growth in the Chicago Loop has been attributed to newly constructed office buildings attracting tech workers, restaurants and food halls contributing to an evolving retail market and increased residential options in the central business district.
According to the Chicago Loop Alliance’s 2018 Economic Profile, the Loop saw a 23.5 percent increase in private-sector jobs in 2018. While the Chicago Loop maintains its size as the second-largest Central Business District in the U.S., the city has a lower average rent than many large cities, ranking tenth, according to data from the Yardi Matrix. Average rent in the Chicago Loop is $2,558, making it the fifth most expensive community area in the city, though still much lower than the average rent of business districts of this scale across the nation.
Growing industries in the Loop
A key indicator of a strong economy in the Chicago Loop is the net absorption of office space in the central business district. Stated in JLL’s fourth quarter 2019 Office Insight report, “Downtown Chicago recorded another impressive year, ending with 2.7 million square feet of net absorption, the market’s 31st consecutive quarter of growth.”
The delivery of the Old Post Office introduced new office tenants including Uber Technologies, Walgreens and Ferrara Candy. The Loop community area includes copious digital technology employers, including a recent deal for Google to double its office footprint in the city. In 2019, the talent labor pool in the tech industry grew by 10.5 percent and ranked sixth for technology degree completions, as reported by CBRE.
Desire to live and work in same neighborhood
Studies have shown that what workers across the world dread the most about their day is the commute to work. Research has also shown that walking or cycling to work improves well-being. As the number of jobs increases in the Loop, so does the demand for housing within walking distance or a few stops on transit.
From 2010-2018, a total of 4,449 housing units were built in the Loop, a majority of which are rentals. In addition, the demand for student housing has increased for universities like DePaul, Roosevelt, Columbia College and more with a combined enrollment of just over 41,000. The establishment of the Lakeshore East neighborhood has transformed a former railyard into an area with more than 4,000 residential units, 2.5 million square feet of office and institutional space and more than 500 hotel rooms. This master-planned area won the 2002 American Institute of Architects National Honor Award for Regional and Urban Design and continues to innovate with planned mixed-use buildings like Vista Tower designed by renowned architect Jeanne Gang.
Attractive buildings for adaptive reuse
Provided Chicago’s significance as an architectural hub, there is a wealth of attractive buildings in the Loop that have recently undergone renovations or a reuse from former officer space into hotel, residential or cultural uses. This indicates the creative approaches that real estate developers have taken to revitalize the Loop to be a destination to live, work and support a steady tourist economy without losing its rich architectural heritage. Fixtures on the riverfront like the Londonhouse Hotel, originally built in 1923 for the London Guarantee & Accident Company and designed by architect Alfred Alschuler, which received a glassy addition and preservation of its iconic façade to offer amenities such as a rooftop bar for hotel guests and loop workers alike. Another one of Alschuler’s buildings was recently repurposed into 176 luxury apartments developed by FLATS, just blocks from anchor universities in the Loop. Other office-to-apartment conversions include 200 rentals near the financial hub on LaSalle Street.
Added green space brings “Urbs in Horto” to life
Chicago’s adopted slogan “Urbs in Horto,” which translates to “City in a Garden,” is an aspirational goal made a reality by the city’s urban designers. While the expansive Millennium Park received attention for creating 319 acres of open, arts-infused space for the public, many recent parks and open space projects have also seen their day in the sun. The opening of Maggie Daley Park, adjacent to Millennium Park, reopened in 2014 after a $60 million renovation to establish interactive playgrounds, a winter ice-skating ribbon, rock climbing wall and tennis courts. The Chicago Riverwalk continues to expand as well as receive significant funds to maintain the sidewalks, landscaping and cultural destinations along the Chicago River. Visible from the south bank of the Riverwalk is the largest art projection in the world, Art on theMART which projects artist-submitted works onto the 2.5-acre façade of the Merchandise Mart along the river.
New high-rise construction
With 34 high-rise projects currently under construction, additional growth is predicted in the Loop with added office, residential and hotel space maintaining momentum in the Loop. Vista Tower, which will claim its spot as the third-largest building in Chicago at 1,191 feet, is set to open in the third quarter of 2020 and will offer 396 condos and 192 hotel rooms. Another significant mixed-use project is the Union Station Tower, which will replace a former parking garage with a 50-story building that is connected to Union Station, the largest transportation hub in the Midwest.
About the author
Liz Peterson is the Marketing and Communications coordinator for FLATS, a subsidiary of CEDARst Companies, an integrated real estate development firm which specializes in adaptive reuse and multifamily projects. Liz received her B.A. in journalism from DePaul University. She is a commissioner for the Uptown Special Service Area, a business improvement district and is a member of the Skyline Council for Landmarks Illinois, a state-wide advocacy organization for the preservation of historic places.