Developer Sterling Bay has scrapped plans to build an office building across from Google’s Fulton Market office in favor of high-rise apartments, as the city’s office market continues to slump.
Sterling Bay held a virtual community meeting for the 27th Ward on Tuesday night to present its new plans, which would be a roughly $300 million investment.
The developer told residents that it pivoted from creative office space to residential because of current market conditions and the continued demand for housing in the West Loop.
Ald. Walter Burnett (27th) said Fulton Market has been “holding up the city” by bringing in new projects and economic development at a time when citywide construction has largely remained stagnant.
Commercial real estate firm Colliers said office construction has slowed, and it’s not projected to pick up until 2026.
The firm noted in its fourth-quarter 2024 report that Fulton Market has been one of the only bright spots for office construction. In Chicago, less than a million square feet of new office space was delivered in 2024. By comparison, about 1.3 million square feet of newly constructed office space hit the market in 2023.
“This is one of the premiere communities in the nation,” Burnett said of Fulton Market.
According to Colliers, Fulton Market is home to the only office building that was under construction at the end of 2024 — 919 W. Fulton Market St.
Sterling Bay worked with architecture firm Gensler to design the proposed apartment building, which would rise 434 feet at 350 N. Morgan St. Google’s office is at 320 N. Morgan St.
Rendering of the proposed residential project at 350 N. Morgan St.
Provided
The site was formerly used for manufacturing but was cleared by Sterling Bay, Gensler Chicago Principal Brett Taylor said. The site was given approval for office development but will need the Chicago Plan Commission and City Council to sign off on the apartments.
If approved, the building would have 573 units and 240 parking spaces. Its 115 affordable units will be built on-site and rent at an average of 60% of the area median income, about $47,100 for one person and $53,820 for a two-person household, according to the city.
Fred Krol, managing director at Sterling Bay, said the developer likes to strike a mix of uses with its projects. It plans on nearly 12,000 square feet of green space along West Carroll Avenue and Morgan Street, including a dog park. Ground-floor retail is also proposed.
The building’s fifth floor would be dedicated to amenities, including a fitness studio, resident lounge, party room and dog run.
If approved, Sterling Bay hopes to break ground later this year, Krol said. It would create 2,800 new construction jobs.
Sterling Bay has been one of the biggest developers in Fulton Market. It opened the office building 360 N. Green this past fall. The building was 90% leased as of July 2024.
Sterling Bay has already delivered a handful of residential towers in Fulton Market, including 225 N. Elizabeth St. and 160 N. Morgan St.