The plan, the first for Downtown in 45 years, attempts to plan for up to 40 million sf of new office space, 7 million sf of retail space and 40,000 new multifamily units expected to be added to the market during the next 20 years. "This is no little plan," says department of planning and development commissioner Alicia Berg. "This is a plan for urban greatness."
Greater North Michigan Avenue Association board member Lynn Osgood notes her group has seen its share of the Downtown office market shrivel from 14% to 10%, losing 500,000 sf while other submarkets grew. U.S. Equities Realty reports North Michigan Avenue's 8.8% vacancy rate is the best Downtown, but the submarket's 13.8 million sf surpasses only River North (9.6 million sf) and the emerging South Loop (1.9 million sf).
Meanwhile, the West Loop has grown to 41.2 million sf, becoming the largest submarket.
"The primary issue is access," concedes Osgood. While the Loop and West Loop possess 63% of Downtown's jobs, they generate 83% of Metra's train rides, she reports. On the other hand, North Michigan Avenue claims 27% of the market's jobs, but accounts for just 10% of Metra ridership.
"Offices are leaving because they can't get to the Avenue," Osgood says.
Some North Siders have a difficult time getting Downtown without a car, laments 50th Ward Alderman Bernard Stone. "It's great to have this great transportation system in the Loop, but there are still vast areas of the city that are underserved," says Stone, who sparred with Chicago Transit Authority and department of planning and development officials. "The middle of the city is still not served."
While Stone abstained from voting on the Central Area Plan, 42nd Ward Alderman Burton Natarus grudgingly went along with it. "I don't think we've dealt with the transportation issue at all," says Natarus, whose ward includes most of Downtown, including North Michigan Avenue. "I hope this will be a living document, and not a dead one."
Natarus also is critical of the three-year process used to draw up the Central Area Plan. Although it involved business and civic leaders who praised it, Natarus suggests aldermen were initially frozen out of the process.
"This is a technocratic organization that put this together," he claims.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
