Two Vintage Loft Office Buildings Set to Be Converted Into Apartments in Chicago

A growing trend is reshaping Chicago’s downtown skyline as more developers turn underused office buildings into residential properties. Recent deals involving multiple vintage buildings highlight the continued momentum behind office-to-residential conversions in Chicago.

Chicago-based Concord Capital has acquired two loft-style office buildings at 445 W. Erie Street and 542 S. Dearborn Street for approximately $8.5 million, with plans to convert them into a combined 107 rental apartments. Both properties reflect a growing opportunity in older office buildings that no longer meet modern workplace demands.

In a separate deal, Honore Properties has been selected as the buyer for 70 E. Lake Street, a 17-story office building in the Loop, is also being positioned for a potential residential conversion. The property sits in a prime downtown location, further reinforcing the appeal of repurposing office space into housing.

These moves come as Chicago continues to face a shift in how office space is used. Remote and hybrid work trends have left many older office buildings with higher vacancy rates, especially those that lack modern amenities. At the same time, demand for rental housing downtown has been increasing, creating an opportunity for developers to reposition these assets.

“We have historic low office prices. We’ve been getting them pretty much 20 to 40 cents on the dollar on average,” said Drew Millard of Concord Capital. “Couple that with Chicago as the number one rent growth market in the country.”

The city has also been actively encouraging conversions, particularly in areas like LaSalle Street, where officials have proposed hundreds of millions of dollars in incentives to help turn empty office buildings into apartments. In total, Chicago is preparing to allocate roughly $317 million in funding to support the creation of more than 1,800 residential units through similar projects.

What makes these latest deals notable is that some developers are moving forward without relying on public subsidies, signaling strong confidence in the long-term viability of the conversion model.

For those tracking downtown Chicago real estate trends, this shift represents a major evolution in how the city adapts to changing market conditions. Conversions not only help address office vacancies but also bring more residents into the downtown core, supporting local businesses and revitalizing neighborhoods.

As more projects move forward, office-to-residential conversions are expected to play a key role in shaping the future of Chicago’s downtown housing market.

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