Key facts
- Sidley Austin will anchor Related Midwest's new 1 million-square-foot office tower at 725 W. Randolph St.
- The 45-story building is slated for completion in late 2030.
- Sidley Austin will occupy more than half of the tower's space.
- Construction is expected to begin next year after financing is secured.
- This is the first major new office tower to break ground in Chicago since 2020.
Law firm Sidley Austin has agreed to be the anchor tenant for Related Midwest's planned 45-story, 1 million-square-foot office tower at 725 W. Randolph St. in Chicago's Fulton Market district. This deal represents a significant development for the city's office market, which has seen a lack of new major construction in recent years.
Sidley Austin intends to occupy more than half of the new high-rise and is projected to move into the building by late 2030. Related Midwest President Curt Bailey expressed optimism that financing for the tower will be secured, allowing construction to commence next year. This project marks a crucial turning point for Chicago's office sector, which experienced a complete halt in its downtown construction pipeline earlier this year, the first time since 2012. The city has not seen a major trophy building break ground since Salesforce Tower in April 2020.
Brian Fahrney, chair of Sidley's executive committee, stated that the move reflects the firm's ongoing commitment to Chicago, where it has a history spanning over 160 years. Sidley currently leases 554,000 square feet at 1 S. Dearborn St., a lease set to expire in 2030. The new building, designed by Kohn Pedersen Fox Associates, still requires city council approval. Related Midwest had previously proposed a mixed-use residential and hotel tower for the site before pivoting to the current office-focused plan in 2023.
Experts suggest that while the overall office market faces high vacancy rates, top-tier properties remain in demand. The vacancy rate in Chicago's 20 newest office buildings is approximately 8%, with high utilization rates for trophy properties. This deal is seen as a clear indicator that Chicago's office market is recovering from the post-pandemic slowdown. Related Midwest is also involved in other significant city developments, including the Illinois Quantum and Microelectronics Park and The 78.