Chet Coppock's Fur Coat wrote:
Regarding office space, there was a point in the early 90s where many downtown properties were offering the last 5 years rent-free on a 10 year lease for a full floor. One reason? The fax machine meant that fewer businesses had to have a downtown Chicago presence, especially law firms and banking-related businesses.
Banking consolidation had already created vacancies in the West Loop in the last decade, and more jobs were moving west of the River and closer to the two big Metra stations. I haven't visited the Loop for a full year now, but a lot of those jobs will likely go to a mix of remote and regional.
Several B/B- office buildings in the Loop were converted to hotels in the last decade. It used to be the W City Center (the old Midland) was really the only thing near the CBOT, otherwise you walked over to the Palmer House. Now there are probably 1000 more rooms between the JW Marriott, the Gray, the Hyatt across from the Chase Tower, and even a LaQuinta and a Hyatt Place over on Franklin. If nobody is traveling for business and nothing is at McCormick place, there are going to be some expensive failures.
The Loop is headed towards an era similar to the late 80s, where everything was a ghost town at 6pm. I worked 3-8pm weekdays during those days, and it was pretty grimey on both sides of the river.
The only saving grace is that the South Loop is dozens of times more vibrant than 30 years ago. Much more housing, for example. Even the jail isn't much of a deterrent. If storefront rents along Dearborn, State, and Wabash come down, there is a chance that that quadrant becomes much more of a real neighborhood.
You have to also take into consideration the residential build up of the west loop (Westgate neighborhood now) and the increase of residential within the loop itself.