California firm nears discount deal for Wacker Drive office tower

June 2, 2026 - 03:37

A California-based investment firm is nearing a deal to purchase a prominent office tower on Wacker Drive in Chicago for about 43% less than what the building sold for a decade ago. The transaction marks another stark example of how downtown office property values have been hammered in the years since the pandemic reshaped work habits.

The building, located in the heart of the city's financial district, has been on the market for months as landlords across the country struggle with rising vacancy rates and falling rents. The potential buyer is expected to pay roughly $100 million, a significant drop from the $175 million price tag from the previous sale in 2013. The discount reflects the broader challenges facing commercial real estate, particularly in dense urban cores where many companies have downsized or shifted to hybrid schedules.

Industry observers say the deal underscores a painful reality for owners who bought properties at peak prices. With interest rates climbing and demand for traditional office space slumping, many buildings are now worth far less than their outstanding debt. This particular tower, while well-located, has seen its occupancy rate fall below 70%, a common trend among older Class B and C properties that lack the amenities of newer towers.

The sale is not yet finalized, but sources close to the negotiations say both sides are optimistic. If completed, it would join a growing list of distressed office sales in Chicago, where the vacancy rate recently hit a record high. For the buyer, the low price offers a chance to reposition the property, possibly with renovations or a conversion to residential use. For the seller, it represents a painful but necessary exit from an asset that no longer generates enough income to cover costs.