Sidley Austin is finalizing a lease to become the anchor tenant of a planned 45-story office tower at 725 W. Randolph Street, positioning the project to become the first ground-up office skyscraper to begin construction in downtown Chicago since the early stages of the COVID-19 pandemic.
Developed by Related Midwest, the 968,000-square-foot building is planned on the edge of the Fulton Market District. Sidley is expected to lease more than half of the tower, relocating from its longtime offices at 1 S. Dearborn Street when its current lease expires in 2030.
The commitment is a notable milestone for Chicago’s office market, where elevated vacancy rates have stalled new development. At the same time, demand has remained relatively strong for premium office space, with newer, amenity-rich buildings continuing to attract major corporate tenants.
Related Midwest is also nearing construction financing for the project and expects to begin work next year, subject to final city approvals. The developer originally envisioned the site as a mixed-use residential and hotel project before shifting to an office tower in 2023.
The development reflects the growing divide within many North American office markets. While older buildings continue to face high vacancy and redevelopment pressure, demand for modern, highly efficient workplaces has supported premium rents and encouraged select new construction. The planned tower will feature contemporary office layouts, advanced technology, and workplace amenities designed to meet evolving tenant expectations.
If construction proceeds as planned, the project will signal renewed confidence in Chicago’s trophy office market while reinforcing the continued evolution of the Fulton Market area as one of the city’s primary business districts.
Read more at Crains Chicago Business.