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3 MIN READ -- Chicago Loop Alliance (CLA) released its quarter three 2024 State of the Loop report on downtown activity, using a variety of data sources, which the organization has produced since July 2020. The report tracks pedestrian activity, hotel occupancy, office workers on-site, arts and culture, multimodal transportation, investment and more. View the quarter three (July-Sept. 2024) State of the Loop report here.
This quarter’s pedestrian activity, coupled with CTA ridership data, mark their highest quarterly rates since the onset of the pandemic. Various summer festivals and programming attracted millions of visitors, creating a vibrant atmosphere reminiscent of the Loop’s bustle prior to the onset of the pandemic. The Loop also continues to witness several expansion and redevelopment initiatives that reinforce the Loop’s vitality to Chicago’s workers and businesses. In recent news, Chicago continued its winning track record of Condé Nast Traveler’s Best Big City in the U.S. for an unprecedented eight consecutive years.
“The Chicago Loop is arguably in the midst of a renaissance, as evidenced by a consistent growth trend since the pandemic, with few signs of slowing down,” said Michael Edwards, President and CEO of Chicago Loop Alliance. “While challenges persist, such as the ongoing impact of remote work, and the realities and perceptions of crime, the Loop’s innovation, resilience and adaptability to changing market conditions position it for continued success.”
Pedestrians and Transportation
State Street in the Loop experienced 1.6 million average weekly impressions, reaching 84% of 2019 levels, the highest since the pandemic for this quarter.
Average weekly CTA ridership for Q2 reached nearly 69% of 2019 levels, experiencing a 14% increase since Q2 2023. Similarly, Metra’s average monthly ridership increased by 10% in the same quarter compared to 2023.
Events
Events like Lollapalooza, NASCAR Chicago Street Race, the Democratic National Convention, and Sundays on State drew hundreds of thousands of attendees at each event, supporting the vibrancy of Chicago summers.
The week of Lollapalooza witnessed nearly 2 million impressions on State Street in the Loop, surpassing 2019 levels by 7%. As reported by the Los Angeles Times, Lollapalooza attendance reached one of the event’s largest in history, with approximately 110,000 people per day.
According to Temple University’s distinguished Sports Industry Research Center (SIRC), out of 53,063 total unique NASCAR attendees, 51% traveled to Chicago solely for the race, generating $128 million in economic impact. This denotes a 17% increase from the inaugural event.
Office
Chicago averaged 52% of pre-pandemic office occupancy during Q3 according to Kastle Systems, remaining 3% above the 10-city average.
Hotels
Chicago Loop hotel occupancy reached 78% in quarter three -- the highest post-pandemic quarter three -- and within 7% of 2019 levels.
Investment
Invenergy, the renewable power provider, announced an additional headquarters expansion at 1 S. Wacker Drive. This is their second major expansion since last fall, resulting in roughly an 80% occupancy rate for the tower.
Tamarac, a Florida real estate firm, is in talks to purchase the 16-story office building at 1 N. State Street for a price close to $13 million, 84% less than when it was last sold in 2016. The pandemic-fueled trend of companies shrinking their office footprints has dramatically weighed down property values. These new investments buck the downsizing trend and create opportunities to foster economic growth and job creation in the Loop.
The Chicago-based Primera Group bought the office portion of the 41-story Clark Adams Building at 105 W. Adams St. with an intent to transform it into a primarily residential building with a “high percentage” of affordable rental units, providing more opportunities for Loop residences.
Arts and Culture
Loop theatre offerings like Broadway In Chicago’s “Back to the Future: The Musical” and “Harry Potter and the Cursed Child” and The Joffrey Ballet’s “Atonement,” along with the City of Chicago's Department of Cultural Affairs and Special Events (DCASE) events brought 841,284 attendees to the Loop in quarter three. There was an approximately 9% decrease from Q2 2024, however, attendance still represents over $230 million in direct economic impact. The fall in attendance is attributed to the large number of other summer events in the Loop.
Methodology
Sources for pedestrian activity provided by Springboard MRI; public transportation provided by Chicago Department of Transportation and Chicago Transit Authority; hotel occupancy provided by Choose Chicago; events provided by NASCAR Chicago Street Race, The Los Angeles Times and Springboard MRI; arts and culture provided by Choose Chicago Cultural Index, Department of Cultural Affairs and Special Events; office occupancy provided by Kastle Systems.
