Willis Tower will transform into a group of neighborhoods that are open to workers, nearby residents and the many tourists flocking to its famous observation deck.
Catalog, a newly renovated multilevel retail and amenity space inside Willis Tower, is seen on May 19, 2022
The more than $500 million project was planned long before anyone heard of COVID-19, yet still shows how downtowns can recover from the pandemic, added Moore. Employees who enjoyed the comforts of home for several years will not happily return to sterile environments but might refill downtown streets if office landlords create community hubs packed with restaurants, shopping, events and public spaces.
A five-level retail, restaurant and entertainment hub called Catalog replaced a mostly empty plaza along Jackson Boulevard and includes a rooftop terrace where office workers type on their laptops next to sunseekers enjoying the weather. Tenants now enter through refurbished lobbies decorated with art and can quickly reach whole floors dedicated to amenities such as fitness centers, bars, cafes, conference spaces, lounges and a private club.
Leasing empty offices is not easy these days. Firms have shed millions of square feet in leased space since 2020, and the market’s vacancy rate just hit a record high of 19.7%, according to a new report from Colliers International. And Kastle Systems, a security firm that tracks office entries, estimated most workers remain at home, with actual office use in the Chicago metro area now standing at just 39%, up from 37.8% four weeks ago.
Willis Tower has seen increased activity, according to Placer.ai, a data analytics firm which tracks mobile devices. Foot traffic into the building was down 64% in early January compared with the same week in 2019, and by May 9, traffic was down 44% compared with 2019, roughly similar to 70 other Chicago buildings studied by Placer.ai. The Catalog space was not included in the analysis.
That gives even the smallest tenants, no matter how high up, easy access to services. And that’s something many companies planning to reopen their offices will demand, because their employees demand it.
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