Distressed LaSalle Street tower listed for sale in test of ‘Google effect’

May 15, 2026 - 03:26

A struggling office tower on Chicago's LaSalle Street has been put up for sale, offering a key test of whether the so-called "Google effect" can still drive demand in a post-pandemic downtown market. The 713,425-square-foot building, located in the heart of the financial district, is being marketed after its owners fell behind on debt payments.

The property sits in a corridor that has long relied on law firms, banks, and trading companies. But with remote work cutting into office occupancy, landlords have struggled to keep buildings full. The listing comes as city leaders and developers try to reinvent the area, hoping that tech tenants like Google--which has a major campus nearby--will pull in other companies and spark a renaissance.

Yet the sale is a high-stakes gamble. The tower is deeply distressed, and its price will signal whether investors believe the neighborhood can bounce back or if it is headed for a long decline. Brokers say the building needs significant capital improvements and a new vision to attract tenants in a market where vacancy rates remain high.

Some see the sale as a bellwether. If a buyer steps forward with a plan to convert parts of the tower into residential or mixed-use space, it could set a template for other aging office properties. If not, the building may join a growing list of downtown towers facing foreclosure or drastic repurposing.

For now, the market is watching closely. The outcome will show whether the "Google effect" is enough to save a street that once symbolized Chicago's financial might, or whether the city's core needs a deeper transformation.