The Trump administration is considering a significant downsizing of federal office space across the U.S., potentially affecting its 19 properties and over 2 million square feet of leased space in Chicago. This uncertainty poses challenges for the local real estate market, particularly in the downtown area, which may suffer from increasing vacancy rates. Experts note that prospective buyers are concerned about the risk of purchasing properties that could remain unoccupied, thereby exacerbating Chicago's existing office market problems. The U.S. General Services Administration has not provided specific plans for this anticipated reduction.
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.
The U.S. General Services Administration operates most federal offices and has not released any detailed plans.
Prospective buyers of federal buildings may worry about getting stuck with vacant offices, depending on how far Elon Musk and the Department of Government Efficiency go in reducing the federal workforce.
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