COVID Aftermath: Interest In Smaller Office Spaces

In the post-COVID period, smaller floor-plate office buildings, such as several proposed in Chicago, are gaining popularity, the Council on Tall Buildings and Urban Habitat reported on November 5, quoting Crain’s Chicago Business. Over the past decade, buildings with large floor plates were on the rise because the design allows companies to place their workers on a single level. However, many companies are now seeking to reduce their office footprints as remote work increases. Another benefit these companies see is the open natural light that can be utilized on smaller floor areas. In response to this shift in interest, developer Sterling Bay has filed a zoning application to reduce the floor area of 360 North Green from 40,000 ft² to 25,000 ft². The increased interest in offices with smaller floor plates also led a real estate investor to pay US$16.4 million for 100 North LaSalle Street, a 1929 office building that has typical floor areas of 6,200 ft², and still others are looking to spread out across multiple smaller floors. The report notes that buildings with larger floor plates will not be phased out. Owners of several office buildings that have larger floor plates have made leasing deals with businesses seeking space.