BOOTH INSIGHTS: Brand loyalty can save a firm in stressful economic times. PAGE 9
ORPHE DIVOUNGUY: Key factors holding back Black families. PAGE 2
CHICAGOBUSINESS.COM | AUGUST 15, 2022 | $3.50
Recession is the new worry for the office market Signs of a slowdown suggest more pain ahead for landlords battered by work from home
JOHN R. BOEHM
BY DANNY ECKER
Chris and Allison Ward with their children, Austin, left, and Logan.
After white-knuckling their way through the COVID-19 pandemic with the rise of remote work hacking away at their bottom lines, Chicago office landlords now face the prospect of an economic recession. Some aren’t sure whether to panic or feel relief. Recent signals suggest that anyone who owns an office building ought to do the former: Rising interest rates and a slowdown in spending have pushed a growing number of companies to lay off employees or pause hiring, moves that have historically led businesses to reduce office
space. Job cuts among big tech companies—which drove much of the pre-COVID leasing boom in Chicago—threaten to diminish local office demand, driving office vacancy beyond its current record high and potentially setting back the recovery of the city from the public health crisis. One of the fastest-growing segments of Chicago’s office market last year—cryptocurrency firms— already is feeling the effects. Cryptocurrency exchange Gemini listed its entire new Wacker Drive office for sublease last month before it even moved in. See OFFICES on Page 22
RV sales turn south as pandemic eases Fading COVID fears combine with high gas prices and rising interest rates to deflate record demand I BY JOHN PLETZ
See RVs on Page 19
THE BULK OF THE INDUSTRY’S SALES ARE TOW-ALONG CAMPERS PURCHASED FOR $25,000 TO $40,000.
ENVIRONMENTAL JUSTICE
How environmental injustices keep property values low and residents battling health problems PAGE 13
JOHN R. BOEHM
E
arly in the pandemic, Chris and Allison Ward ordered a recreational vehicle so they could travel while keeping themselves and their two young kids safe. Back then, gas prices were plunging, COVID fears were rising and RV makers were struggling to churn out vehicles in the face of soaring demand. By the time the Wards got their $62,000 Airstream trailer last month, gas prices had surged past $5 a gallon and people were much less worried about catching COVID.
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HEALTH CARE
CRIME
Price concerns arise with Advocate Aurora’s planned merger. PAGE 3
New York and L.A. have made a dent in gun violence. Why can’t Chicago? PAGE 8
8/12/22 3:37 PM