Chicago Office Buildings Trade for Less, Development Slows

Chicago’s office fundamentals didn’t show signs of improvement year-over-year through August, except for its sales volume, which has increased since last year. Developing headwinds continue to put pressure on the sector and some owners are trying to minimize their exposure, leading to swaths of office space being divested.

Others look to conversions as a means to address the fundamental shift in how office buildings are utilized and repositioned. Far from being a catch-all solution to the sector’s woes, office-to-residential redevelopment can be a good avenue for some owners to capitalize on these shifting trends...