The Trump administration's intention to reduce federal office space by up to 50% creates uncertainty for the future of government properties in Chicago. With 19 owned properties and extensive leased office space, any significant pullback could harm the already struggling downtown market. Investors express concern regarding the potential for vacant buildings, emphasizing that more unoccupied offices would impact the economy negatively. The General Services Administration remains silent about specific plans for asset sales, leaving stakeholders in the dark amidst rising apprehension.
Investors like certainty, and there is way too much uncertainty right now, especially with the federal government's plans for downsizing and what that would mean.
The last thing Chicago needs right now are more vacant office buildings.
Although it accounts for only a small slice of Chicago real estate, a pullback by the federal government could deal a blow to the shaky downtown office market.
It's also unclear how a downsizing of federal space might unfold, and whether the government could entice buyers if it attempts to sell any Chicago buildings.
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