Posted 4 months ago in Trending
4 MIN READ -- Chicago Loop Alliance (CLA) recently released its quarter two 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 two (Apr.-Jun. 2024) State of the Loop report here.
Chicago's Loop district demonstrated resilience and growth in Q2 2024, noting positive trends across categories at a crucial time in the post-pandemic recovery. Multimodal transportation shows a significant increase, with weekend pedestrian activity on State Street in the Loop notably exceeding 2019 levels; a significant rise in cycling; and rebounding CTA ridership. The neighborhood's office occupancy continually surpasses other major metros, and leading companies' investments in office expansion and improvements demonstrate the business community's commitment to the Loop. Cultural events like Sundays on State drew hundreds of thousands, enhancing the district's vibrancy beyond the workweek.
“The spring quarter in the Loop continued to show evidence of recovery, particularly through increased public transportation usage; a number of office space expansions and investments; and growing opportunity for new retail,” said Michael Edwards, President and CEO of Chicago Loop Alliance. “We look forward to investors capitalizing on the changing consumer habits for retail activity, but in the meantime, visitors are visibly returning to the Loop for leisure and business activities in a pattern reminiscent of pre-pandemic activity.
Pedestrians
Pedestrian activity on State Street in the Loop has shown encouraging signs of recovery. State Street recorded 35,561,428 visits year-to-date, representing a 10% increase compared to last year, and hovering within 10% of 2019 levels. Weekend visits have been particularly strong, surpassing 2019 levels by 28%, at an average of 442,000 pedestrian impressions on Saturdays and Sundays.
CTA reported over 70 million rides in Q1 2024. Year-to-date ridership has increased by 13%, with May 8 marking the system’s busiest day since 2020, recording more than a million rides. Chicago is also experiencing a remarkable bike boom, with cycling up 119% between fall 2019 and spring 2023, the largest increase among the country's ten largest cities. The Loop boasts a perfect 100 in walk and transit scores, giving residents safe and sustainable commute choices as they travel through downtown.
Preparing the Future
The future of Chicago's transportation system, crucial to the Loop's economy, faces significant challenges and opportunities. The Regional Transportation Authority (RTA), which oversees the CTA, Metra and PACE, approaches a fiscal cliff in 2026 as federal COVID funding diminishes, and the full impact of remote work trends is felt. To secure the CTA's fiscal future, changes are necessary. Loop stakeholders should monitor proposed legislation like the Metropolitan Mobility Authority Act, which could significantly alter how transit decisions are made, improving the Loop's economy and quality of life.
Office
Chicago's office market shows promising signs of recovery. In Q2, the average weekly office occupancy in Chicago surpassed that of New York City and Los Angeles by 4% and 8%, respectively. This figure represents a continued upward trend following the pandemic, according to data from Kastle Systems.
Arts and Culture
The Loop’s cultural scene is thriving, with signature events and institutions drawing impressive crowds throughout Q2 2024. Cultural institutions’ attendees increased by 4% compared to Q2 2023. Total attendance exceeded 1 million attendees this quarter, representing nearly $300 million in direct economic impact. Of note, Memorial Day weekend saw bustling activity, with Sueños Music Festival attendance exceeding 60,000 each day, generating over $243 million in economic activity. In Millennium Park, the Chicago Blues Festival attracted 114,000 fans, one of the largest attendance records in park history. These numbers collectively paint a vibrant, culturally rich downtown, that continues to attract both residents and visitors.
Investment
Invenergy announced an expansion of its Wacker Drive headquarters, adding 34,876 square feet to accommodate a growing Chicago workforce. HOK architecture firm also announced its relocation of their Chicago office to Prudential Plaza, staying in the Loop and signing a 13-year deal for 24,450 square feet. This move follows a $50 million commitment by the building's owner, Wanxiang America Real Estate Group, to upgrade the lobby and tenant amenities. HOK, part of the team that designed O’Hare Terminal 5, has grown its local workforce by 30% in the past 18 months. These investments signal a strong vote of confidence in the Loop's future as a prime business location.
Corridor Ambassador Expansion Program
Chicago Loop Alliance's Corridor Ambassadors summer expansion program launched this quarter, temporarily adding three Social Services Outreach Ambassadors, in addition to approximately 20 ambassadors to the team of State Street ambassadors in the Loop seven days a week. In partnership with CPL’s Harold Washington Library, the outreach team made over 1,100 referrals in May to employment, housing and social services. This program demonstrates CLA’s commitment to addressing social issues and supporting everyone in the Loop.
Methodology
Sources for pedestrian activity provided by Springboard MRI; public transportation provided by Chicago Department of Transportation, Chicago Transit Authority and Walk Score; arts and culture provided by Choose Chicago Cultural Index, Department of Cultural Affairs and Special Events and the Art Institute of Chicago; office occupancy provided by Kastle Systems.
