Adaptive Reuse in Chicago - A Case Study

What can we learn from Chicago about office conversion? - An Ivory Innovations Case Study

Erika Jensen

Adaptive Reuse in the LaSalle Street Corridor

Located in the heart of Chicago, the LaSalle Street corridor has historically served as the city’s financial district. It is made up of large and historic buildings, which house banks, investment firms, and other companies. Before COVID-19, the area was one of the fastest growing in the country, with 70,000 new residents and 180,000 new jobs added following the year 2000. However, the recent trend toward remote work, as well as shifts towards the city’s West Loop, has resulted in office space in the area being 25% vacant. This number equates to 19.5 million square feet of underutilized space. As a city with an affordable housing shortage, Chicago has seen an opportunity to employ office-to-residential conversions along the LaSalle Street corridor.

Activating Residential Opportuniites

In September 2022, Mayor Lori Lightfoot revealed her plan to offer monetary incentives obtained from both investments and tax-increment financing (TIF) dollars to developers willing to transform office space into 1,000 new residential units, with at least 30% of new units set aside for low-income individuals. As of April 2024, four adaptive reuse projects have been selected. Together, the four projects are valued at $528 million in development costs, with $151.2 million stemming from TIF assistance. They will create 1,000 new apartments, with around 300 units set aside for affordable housing. These projects will be reviewed by Chicago’s Community Development Commission and the Landmarks Commission later this year.

In addition to funding these large development projects, Chicago has utilized TIF funding to support small businesses and reutilize the area. In March 2024, six restaurants and a proposed museum received $1.5 million in grants.

Chicago Moving Forward

Mayor Brandon Johnson has continued Lightfoot’s efforts since taking office, illustrating the project's long-term commitment to supporting the revitalization of the area. Through utilizing adaptive reuse, Chicago will reinvigorate LaSalle Street. Their efforts offer an excellent example to cities facing similar challenges.