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Awaiting the Winds of Change

Even the two tallest office towers in the biggest Midwest city face troubles brought about by a distressed market.

By Robert Carr | Updated on February 01, 2012

The plight of Chicago’s two largest office buildings detail the still raw difficulties of commercial real estate outside of the current US core markets of Washington, DC, New York City and to some extent, San Francisco and Texas cities.

At the tallest office building in the country, the Willis (former Sears) Tower, property managers are fighting for a contract to lease a structure that’s dropped about 10% vacancy in the past two years to just more than 80% full – a gap of about 800,000 square feet. The tower owners, American Landmark Properties Ltd. and a couple of New York City investors, recently had to postpone a $1.5 billion offering for the 110-story building due to lack of buyers.

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