Samarth Narang, a South Loop resident of just 10 months, feels a connection to the vibrant history of his building at 820 Michigan.
“Just walking through the doors, you can get a sense that maybe it was something else,” Narang reflects, acknowledging the building’s past as the headquarters for Johnson Publishing Co., home to prominent magazines such as Ebony and Jet, founded in the 1940s and 50s.
The building, now transformed into apartments by Rosemont-based 3L Real Estate, retains remnants of its publishing legacy, including the restored ‘Ebony JP Jet’ sign on the new rooftop deck.
Narang enjoys both the history and the prime location of his apartment, which offers stunning views of Lake Michigan.
“I work in Indiana and appreciate being close to the train station and downtown amenities,” he noted.
Narang’s experience is about to be shared by thousands more as city officials and developers focus on increasing office-to-residential conversions.
They envision a downtown Chicago that embodies a vibrant, fully-fledged neighborhood, blending commercial, residential, and office spaces.
Extensive research reveals at least 11 planned conversions are in development, according to commercial real estate agency Bradford Allen and public records.
Quintin Primo, founder and executive chairman of Capri Investment Group, believes that around 3,600 new apartments are on the horizon, stemming from initiatives like the city’s La Salle Corridor Revitalization and growing interest in developments beyond downtown, particularly in Fulton Market.
Statistics from the Chicago Loop Alliance indicate that in 2022, the Loop was home to 30,342 housing units, while the total number of units in downtown Chicago reached 140,394.
The conversion of offices to apartments represents a key strategy for breathing new life into underutilized buildings.
Capri Investment Group is collaborating with the Prime Group to redevelop the former Cboe Global Markets headquarters into a data center after purchasing it last summer for $12 million.
A CommercialCafe report from last year highlighted that of the 30 largest cities in the United States, Chicago ranks second in the potential for office spaces to be converted into residential units.
The report estimates approximately 27% of Chicago’s office inventory possesses conversion potential, with a significant portion classified as “largely viable” for such transformations.
This classification suggests these buildings face some challenges but have substantial prospects for residential conversion, according to CommercialCafe.
Despite the optimistic outlook, experts warn of a stark contrast between theoretical possibilities and the practicalities faced by developers in Chicago.
High interest rates, difficulties obtaining financing, government regulations, and physical constraints of buildings frequently hinder office-to-residential conversion projects.
Primo, while optimistic, believes that 27% underestimates the potential.
“In conventional redevelopment strategies, that figure might be accurate,” he stated.
“However, there are innovative solutions for deep floor plates that have yet to be genuinely considered by the market.”
Lee Golub, managing principal at Golub & Co., considers the 27% estimate “a crazy number.”
He asserts that while some office buildings could function as apartments, financial viability is often a stumbling block.
“Development right now is very challenging,” Golub explained, noting that many buildings in poor financial condition are situated in less desirable residential areas.
Construction costs have also surged, complicating the feasibility of conversions.
“The costs associated with converting aging buildings can match those of new developments, but at least with a ground-up project, developers have clarity on design and cost requirements from the outset,” he elaborated.
In the case of older buildings, unforeseen repair and maintenance costs may emerge as renovations begin, especially since many are clad in expensive materials like terracotta and limestone.
Primo’s comment on conversion viability echoes Golub’s insights, highlighting the significant risks tied to facade renovations in Chicago’s iconic structures.
Andy DeMoss, executive managing director of Bradford Allen, emphasizes the numerous obstacles hindering conversions, such as rising interest rates and construction costs.
Looking ahead, City Hall envisions the transformation of 1.3 million square feet of vacant space into housing, including affordable units, through the La Salle Corridor Revitalization program, which represents a substantial investment in housing solutions across the city.
Primo also points to the ongoing revitalization in Fulton Market and River North, areas witnessing transformative developments from old warehouses into appealing offices and residential spaces.
Two ambitious projects in Fulton Market aim to construct over 1,000 new units through the planned towers at 1200 W. Fulton St.
In River North, two additional conversion projects at 111 W. Illinois St. and 116-122 W. Illinois St. are slated to commence this year.
“The city’s approach to incentivizing these conversions reflects a thoughtful strategy to enhance downtown residential markets, catering to both market-rate families and lower-income individuals seeking affordable housing,” Primo remarked.
Ciere Boatright, the Chicago Department of Planning and Development Commissioner, expresses confidence in the potential of these redevelopment projects, stating there are positive indicators from developers who recognize the value of these historically rich buildings.
“We’re not seeing any red flags regarding property tax revenue from these conversions,” Boatright reassured, noting that residential properties in Cook County are taxed at just 10% of their value, in contrast to the 25% rate for commercial properties.
The rise in office vacancies since the pandemic has shifted a larger portion of the property tax burden away from the Loop, according to a recent analysis by the Chicago Sun-Times.
Boatright articulates, “We’re not discussing an overwhelming number of buildings being converted.
I recognize the implications these conversions carry, but we still have substantial progress to make before reaching a point of concern for the city.”
Indeed, these conversions align with the vision that Boatright and others hold for Chicago’s future as an engaging and lively downtown hub beyond regular business hours.
For residents like Narang, initiatives like the La Salle Corridor Revitalization are crucial.
“I’m all for affordable housing options that bring more residents into the city’s core,” he states.
Other residents prioritize prime locations over historical significance.
Ainhoa Ortiz, who has lived at 820 Michigan for three years, initially chose the building for affordability and location rather than its publishing roots.
“I enjoy being close to the river, the Bean, and the heart of Chicago,” Ortiz said.
Bradford Allen anticipates an uptick in office occupancy rates as many businesses have moved away from radically downsizing their office space.
In the first quarter of 2025 alone, 1.7 million square feet of office space was leased, demonstrating a 26% decrease from the previous quarter’s 2.3 million square feet.
Many of the properties experiencing increased occupancy are newer developments designed with modern amenities, catering to contemporary workplace needs.
Despite this favorable trend for prime office spaces, DeMoss acknowledges potential for conversions, particularly for older, largely vacant buildings due to companies opting for modern facilities.
“This trend is beneficial for revitalizing the overall market,” he noted.
“It allows for a reduction in available space, indirectly encouraging tenants from converted properties to explore other buildings, thereby improving overall occupancy rates.”
Looking forward, DeMoss foresees an array of uses for converted buildings, signaling potential shifts toward data centers and self-storage facilities among others beyond merely residential conversions.
According to Shawn Ursini, senior manager with the Council on Tall Buildings and Urban Habitat, adaptability will be crucial as the city navigates valuation challenges in downtown properties.
“Flexibility will be necessary for determining the most suitable uses for each building since no single approach fits all circumstances,” Ursini remarked.
Moreover, he emphasized the need for adaptable zoning policies to facilitate the conversion of these structures.
Golub expressed optimism about the influx of private investments in Chicago, noting that many recent conversions were undertaken by local developers.
However, the trend is shifting as out-of-state firms begin to recognize lucrative opportunities given the city’s competitive rental growth.
Boatright highlights the potential conversion project at 500 N. Michigan Ave., where Connecticut-based Commonwealth Development Partners plans over 300 apartment units through the transformation of the 24-story office tower.
The quick pace at which this project progressed through the Chicago Plan Commission—less than 35 days—exemplifies the city’s intent to streamline such initiatives.
“Our goal is to support both local talent and attract investment from outside Chicago to ensure successful conversions, ultimately fostering a thriving downtown district,” she concluded.
“Changes are coming, and while downtown may appear different post-pandemic, it’s essential that we create a balanced mix of residential, office, and retail infrastructures along key corridors like La Salle and Michigan, enriching the entire Loop area and the vibrancy it delivers to our city.”
image source from：https://www.wbez.org/real-estate-development/2025/04/25/office-residential-conversions-apartments-housing-downtown
