Sarah Tomlinson and Eliza Zacharias were sitting on a concrete bench at a small park off Wacker Drive, catching up over lunch on a sunny afternoon.
It’s become a weekly tradition for the friends and former University of Illinois roommates. They both work in the Loop, and their Tuesday lunches at 311 S. Wacker Park are a chance to catch up — and step outside the office to appreciate the city.
They weren’t alone. Several people were stretched out on the grass, listening to music or chatting on the phone. Workers with takeout food were walking nearby along South Wacker Drive and West Jackson Boulevard. The energy on the street is a welcome sign for the Loop. Experts and office workers say the neighborhood’s foot traffic is coming back, but it’s still behind pre-pandemic levels.
Many said more needs to be done to revitalize the Loop as some companies still remain skittish on a full return to in-person work.
Data from Kastle Systems shows the average weekly occupancy at offices across 10 major U.S. cities hit a post-pandemic record high of 55.8%, for the week of Sept. 9. In Chicago, the average occupancy in that period was 58.7%, up more than 4% from the previous week. Kastle provides building security systems, and since 2020, has been tracking office activity by counting badge swipes.
Tomlinson said she comes into the office five days a week. Zacharias’ company mandates two to three days in-person, but she said it’s moving toward a five-day policy.
“It has been a lot busier [at work] recently, which is nice to see,” Zacharias said.
Touring office spaces
The vacancy rate in the Loop was 24.7% in the second quarter of 2025 — a record high, according to research from commercial real estate firm Bradford Allen. That’s up 1.3% from the first quarter, and a 2.7% increase compared to the second quarter of 2024.
The firm said the second quarter was also one of the weakest periods for overall office demand since the beginning of 2024. Direct net absorption, a measure of space that’s been leased versus vacated over a period of time, hit negative 1.5 million square feet. That means more companies vacated than leased office space in the second quarter.
Andy DeMoss, executive managing director of Bradford Allen, said office vacancy hasn’t improved in the past year. “It’s arguably the worst it’s ever been in Chicago,” he said.
But it’s reassuring to see more foot traffic in the Loop, and he said more companies are requesting office tours for larger spaces, signaling strong interest in the Loop. He also said his firm is doing more office and retail deals downtown.
Leasing activity is starting to return after companies pulled back on signing larger leases during the pandemic. There’s a lot of larger tenants in the office market right now, and it feels promising, DeMoss said.
“That is a great indicator because a lot of the small- and medium-sized firms look to the larger firms for guidance on what to do with their [return to office] policies,” DeMoss said.
Alexandria Borrego, associate director of management services at Hiffman National, has seen a similar rise in leasing tours. She’s the downtown office property manager for the firm.
She said a lot of tours are by companies in older, lower-quality buildings who now want to upgrade. They’re also seeking better amenities for their employees like gyms and nearby restaurants.
“We’re also [helping] tenants who really want to partner with us to entice their employees to come back,” Borrego said. “It’s a really unique spot that we find ourselves in as managers. They really look to us as, ‘What type of activities do you guys do here? How many restaurants are around you guys? Do you have a gym? How much does it cost?’”
More than a desk
Office property owners have to compete with the comforts of home, and as they tout their property’s location, modern space and access to restaurants, they’re winning over companies.
Zacharias’ office, at 540 W. Madison St., has two kitchens and beverages on tap like cold brew and kombucha. The building also has a Starbucks and gym, which she said are nice amenities.
“It’s no longer good enough to be close to the train,” Borrego said. “You have to be close to the train and highly amenitized and highly activated — and that’s the baseline now.”
Newmark tracks buildings that have recently completed, or will undergo, renovations. Among the six buildings in Chicago it identified, the most common changes were renovating the lobby and adding fitness centers.
But Amy Binstein, Newmark’s head of Midwest research, said there’s no one amenity that’s drawing new tenants to office buildings.
“I think it’s about a community feel,” she said. “They want to be in a building that makes them feel that they’re really in it.”
Fulton Market-based Sterling Bay took over leasing at 123 N. Wacker Drive about a year ago. The firm said it has leased more than 95,000 square feet — or about 17% — of the building’s rentable space.
Sterling Bay CEO Andy Gloor attributes the success to recent building renovations, with more on the way.
“The revitalized lobby will soon feature new retail offerings, interior landscaping and refreshed furniture,” Gloor said in a statement. “Beyond that, Sterling Bay is bringing in a new fitness operating partner, Kinema, beginning in September, and plans to make some furniture upgrades to the 30th floor amenity lounge and conferencing area. These improvements are based on direct feedback from tenants and reflect what we’re seeing drive leasing decisions across the market: high-quality, hospitality-focused amenities that support wellness, collaboration and community.”
Data from real estate firms shows vacancy rates are typically lower in Class A buildings. These are buildings that are often new, modern and have many of the offerings tenants look for like gyms, conference centers and cafes. Class B and Class C buildings, by comparison, are older and often require significant renovations.
Bradford Allen said office vacancy in Class B buildings in the central Loop was 30.5% last quarter, but at Class A buildings it was 21.7%.
“That gap between Class A office rent and Class B and C … is just widening,” Borrego said. “Class B and C, I think they’re really in for some serious trouble if they don’t start looking internally and really figuring out how they can amenitize their space. You don’t have to build out the greatest and best things, but you have to have something to be competitive because no one is going to sign a lease.”
Return to office
Development firm Clayco is among the companies that pushed for a return to office.
Michael Fassnacht, Clayco chief growth officer and president of Chicagoland Region, said the company asked staff last year to start coming in five days.
Fassnacht, former CEO of World Business Chicago, encourages other companies to follow suit because it fosters professional growth, improves team culture and wards off feelings of isolation and loneliness that’s common in younger generations.
It’s also just good for the economic health of downtown, he said.
“The Loop has become a neighborhood. It’s not just a business district,” Fassnacht said. “For me, it was important to reframe that. I think some people still think it’s just a business district.”
The Chicago Loop Alliance is trying to reframe people’s perception of downtown. The organization unveiled a monthslong series of events called Falling for the Loop that focuses on arts and culture. It also includes the 11th annual Arts in the Dark Halloween parade.
The alliance has seen nearly 35 new businesses either open, or have plans to open, Loop locations this year. The retailers are a mix of local and national brands, which is encouraging, Chicago Loop Alliance CEO Michael Edwards said.
“These nationals are looking at the third largest market in the country, and they’re deciding that this is a good time to get into Chicago because some of those really great corners or spaces are now available and maybe they weren’t before,” Edwards said.
Meghan Shank, general manager of The Sterling Food Hall inside the landmark skyscraper The National, said weekly sales are on par with 2023.
The food hall, at 125 S. Clark St., sees the most foot traffic midweek, particularly Wednesdays and Thursdays. Shank said Mondays and Fridays — when office workers are likely remote — tend to be quieter.
“Like many downtown businesses, our performance is closely tied to office attendance, seasonal tourism and broader external factors, but we’re encouraged to see steady growth and strong guest support,” Shank said in a statement.
For Tomlinson and Zacharias, their regular commute into the office is worth it.
“I do enjoy being in person because being a freshly post-grad employee, I get to meet a lot of people that … are my age. That’s really nice,” Zacharias said. “I also do feel more productive when I’m in person, and I feel like I get a lot more work done.”