CHICAGO | 725 W Randolph | 700 FT | 41 FLOORS

[Zapatan]

Originally Posted by Randomguy34

The diagram shows that the tower will be 700 ft.

I'm looking at post #406 on the previous page and apparently 700' is the maximum planning height. Unless that's incorrect, obviously.

[Randomguy34]

^ 700' is the maximum planning height AND it's the diagram height.

Originally Posted by Randomguy34

The diagram shows that the tower will be 700 ft.

[Zapatan]

I hope so, whatever it is it'll be tall for the area and I like the design.

[NYguy]

https://www.businessinsider.nl/what-...g-to-build-it/

What office meltdown? Developers see a shortage of high-end space and are rushing to build it.
-Much of the office market may be mired in a downturn, but demand has been strong for high-end space.
-New office construction has dropped off sharply, leading to a potential upcoming shortage.
-Major developers and tenants have taken notice, and projects are revving up to break ground.


Daniel Geiger
10 03 2024

But because there is so little office construction on the horizon nationally, builders have begun to lay similar plans in other markets with similar dynamics.

Visser, for instance, says Related expects to break ground on a new 40-story, 925,000-square-foot office tower at 725 W. Randolph St. in Chicago by next year.

Although that city is also awash in available space, the building would be one of the only available newly built office properties in the Fulton Market neighborhood, a desirable sub-district in the city's West Loop that is known for its retail and restaurants, he said.

Related Ross, a spinoff development firm launched earlier this year by Related's founder, Stephen Ross, is about to begin construction on 15 City Place, a nearly 500,000-square-foot office building in West Palm Beach, Florida. The project is about 70% pre-leased to an undisclosed roster of tenants, according to Jordan Rathlev, a senior vice president of development at the company.

[mh777]

Now that is news! Great find.

[dreamy-developer]

Not much to add here but to say if this does happen...

The canyonization of the Kennedy continues lol

[twister244]

There seems to be a competing narrative on the office front space right now....

There's the Amazons and Jamie Dimons of the world insisting everyone needs to go back to the office five days a week, which would support the narrative that more premium office space is needed to help fill the gap.

Then there's reality....... Some people are going back to the office, but not all. If anything, you're probably seeing the truth somewhere in the middle. Older office space is struggling big time as companies that do have people coming in probably have a smaller pool of workers that come in, or a pool of workers that only come in a few days a week and don't need massive floor plates. I've read a couple bits on Crains about companies trading up to more premium spaces in newer towers.

So, I would say this might be enough to get a tower off the ground if it's premium space and the demand can justify it, but it's going to be at the expense of older towers in other parts of downtown. I'd rather see developers renovate older towers to lure people in than a new shiny tower go up in the West Loop at the expense of a tower hollowing out in the loop.

[moorhosj1]

Originally Posted by twister244

I'd rather see developers renovate older towers to lure people in than a new shiny tower go up in the West Loop at the expense of a tower hollowing out in the loop.

Those older towers in the Loop will be/are being renovated, but it is to convert them to residential. They are likely dead as office towers.

Just today, Crain's reported on 19 S. LaSalle being sold with intent to convert. Add in the LaSalle Re-imagined program and the writing is on the wall for these older, small floor-plate towers.

Chicago investor Igor Gabal has purchased a vintage LaSalle Street property out of foreclosure with a $50 million-plus plan to transform it into as many as 190 apartments. And he's already lining up his next big investment a few blocks away.

[r18tdi]

Interesting tidbit from the Insider story. If that is indeed the case, I would assume Related must have an anchor lined up for 725?

[Randomguy34]

Originally Posted by moorhosj1

Those older towers in the Loop will be/are being renovated, but it is to convert them to residential. They are likely dead as office towers.

^Agreed, there can be a net positive if the older offices are repurposed. Lower Manhattan started having a glut of offices since the 1940s, since companies were relocating to Midtown and the flood of supply from the WTC complex depressed demand for older offices even further. 9/11 was the final nail for attracting people to old Lower Manhattan office spaces, which was during a time people started moving back to NYC. Developers saw an opportunity to convert the glut of Class B/C office spaces into apartments, transforming the Financial District into an area that's busy into the late hours with plenty of residential and retail

Right now we're seeing a similar dynamic between the Loop and West Loop. Many companies are abandoning older Loop offices for newer ones in West Loop, during a time when office demand is low cause of the pandemic and Chicago has the fastest growing downtown in the country. The reshuffling of companies opens up the opportunity for the Loop to become denser and vibrant.

[Briguy]

Having just completed a new office search, there is NOTHING available in that neighborhood. Roughly One single floor or less of space in 360,333, 167 green and 800 Fulton market each. Even 919 under construction has less than half free. And literally no new deliveries for 3 years at the minimum. I think the developers(or banks/funders) underestimated the demand for new and certain neighborhoods and sort of dropped the ball on this.

[chris08876]

They've been with the Covid mentality with office and have fully yet to catch up and probably still spooked by the interest rates. But I suppose, if true in NY, likely true in Chicago and other business/office centers.

Maybe 2025 will yield a slew of proposals. Maybe a sign of a nice boom to come. Here and in other locations.

[nomarandlee]

Wasn't Related's plans for 725 W Randolph to turn the service drive into a kind of ped zone incubator for the rest of Randolph Street? If I have that right I hope that idea is still on the table.

[iguy]

I didn't realize this had all the necessary approvals? So exciting if this really is near(ish) breaking ground

[twister244]

Originally Posted by moorhosj1

Those older towers in the Loop will be/are being renovated, but it is to convert them to residential. They are likely dead as office towers.

Just today, Crain's reported on 19 S. LaSalle being sold with intent to convert. Add in the LaSalle Re-imagined program and the writing is on the wall for these older, small floor-plate towers.

Yep.... My only concern is that the volume of renovation doesn't keep up with the growing glut in the Loop. I think if it can be done in a timely manner, then sure, things will be good for everyone. I just worry if you get too many buildings all hollowing out at the same time, you create these localized patches of decay where nobody wants to invest into them. I think for some older buildings closer to the Thompson center, theater, State Street, etc., will be able to convert and draw people. For other parts of the Loop though, it might be a bit tougher to draw interest in.

[BrickellBased]

I actually really like this design.

925,000 sqft is a major office building. I believe they can do the 700'+ because this is East of Halsted.

With this Fulton Market is basically on par with some other mid sized CBDs throughout the US. I believe with this and another one Fulton is nearing 10 million sqft.

[gandalf612]

Originally Posted by Randomguy34

Right now we're seeing a similar dynamic between the Loop and West Loop. Many companies are abandoning older Loop offices for newer ones in West Loop, during a time when office demand is low cause of the pandemic and Chicago has the fastest growing downtown in the country. The reshuffling of companies opens up the opportunity for the Loop to become denser and vibrant.

Which is a huge net positive for the city. the West Loop is already popping at all hours because it has a good mix of office and residential, the mix of the Loop improving will hopefully replicate a lot of that and everyone wins.

[Zapatan]

Originally Posted by iguy

I didn't realize this had all the necessary approvals? So exciting if this really is near(ish) breaking ground

Not sure but that would be great, unless they increase the height and need extra approvals.

Would 925k SF put it past 700'?

[ardecila]

Originally Posted by nomarandlee

Wasn't Related's plans for 725 W Randolph to turn the service drive into a kind of ped zone incubator for the rest of Randolph Street? If I have that right I hope that idea is still on the table.

I dunno about an incubator, but yes, the service drive would be closed and turned into a plaza.