Building Renovations Are Transforming the Office Market

Beacon Properties bought 1 N. Dearborn in October 2015 and has completed a total overhaul, even adding a rooftop deck.

CHICAGO—The leasing activity at most of the CBD’s new trophy towers has been quite strong, but with so many tenants moving out of older buildings, the downtown office market now has a lot of holes. But landlords can see this as an opportunity to refresh and revive their buildings and prepare for the coming decade, when tenants will definitely demand better amenities and less square footage. Hip lounges, rooftop terraces and modern lobbies are needed to attract new tenants. Even owners who made upgrades just a few years ago are looking again at how they can overhaul their space into appealing environments for millennial talent.

Wright Heerema Architects has designed many of these redevelopment projects, including 123 N. Wacker, where the Chicago Bears recently signed a new lease. The firm also designed the new amenity spaces and lobby at 1 N. Dearborn, which continues to draw new tenants, such as Euromonitor International. GlobeSt.com sat down with Roger Heerema, one of the firm’s principals, to discuss how these issues will impact the region’s office market.