Where do Chicago’s mega developments stand?

As we cross the threshold from 2024 into 2025, where do we stand with Chicago’s top three megadevelopments in the city? It’s now been more than five years since City Council signed off on two multi-billion dollar plans to transform areas of the city along the Chicago River and more than three years since they signed off on finally redeveloping the former Michael Reese hospital site that was once considered part of the city’s failed Olympic bid.

In the years since they’ve been approved, the COVID-19 pandemic obliterated commercial office space demand and interest hikes in addition to inflation more recently have led to a lending environment where developers cannot get projects off the ground. These three megadevelopments - The 78, Lincoln Yards, and Bronzeville Lakefront - are by no means immune to these challenges and have faced intense headwinds in making progress towards coming to fruition. 

Here’s a look at where Chicago’s biggest megadevelopments stand as of now:

The 78

Planned by Related Midwest, The 78 is a 62-acre megadevelopment in the South Loop along the Chicago River south of W. Roosevelt Rd. Original plans called for over 13 million square feet of mixed-use development masterplanned by Skidmore Owings & Merrill.

Years later, nothing but the Wells-Wentworth Connector has been constructed on the site, but the artery is still not open to the public. In 2022, Mayor Lori Lightfoot selected the Bally’s casino plan over Related’s proposal for a casino and entertainment district on the north end of the site.

Early in 2024, Related Midwest announced plans with the Chicago White Sox for a new ballpark that would anchor the proposed high-rise district. With home plate at the southwest corner, the stadium wraps around the field primarily on the west and south sides, offering expansive views of downtown beyond including the Sears Tower.

Later this year, just as construction was about to commence, the Discovery Partners Institute announced that it was pulling the plug on their planned headquarters building at the south end of The 78. The organization will instead shift its focus to the quantum campus at Related Midwest’s planned redevelopment of the former US Steel site at 8080 S. DuSable Lake Shore Drive.

With the DPI headquarters no longer moving forward and the White Sox stadium proposal meeting opposition due to the ask for public funding, projects at The 78 are largely on hold. More recently at the end of the year, it was announced that Chicago Fire owner Joe Mansueto has been looking for a site to build a dedicated soccer stadium and The 78 has become the top prospect. Crains recently reported that the Chicago Fire and Related Midwest have presented their plans to Mayor Johnson and city officials. No renderings or plans have been released to the public, but Mansueto has voiced his intentions to build the stadium with entirely private financing.

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Lincoln Yards

Back in 2023, Sterling Bay completed 1229 W. Concord at the south end of Lincoln Yards with approval secured to proceed with the next phase dubbed The Steelyard at Lincoln Yards. Plans called for groundbreaking of two new buildings there later in 2023, but those plans never came to fruition.

Sterling Bay is currently in a position of seeking new lenders as Lincoln Yards’ two primary backers, New York-based J.P. Morgan Asset Management and Dallas-based Lone Star Funds, have sought to sell their stakes in the project at substantial discounts. Sterling Bay was turned down by the Chicago Teachers Pension Fund in 2023 and reports earlier in 2024 said that investment firm Kayne Anderson was considering backing the project but nothing official has come from the reported interest.

Amid high interest rates, inflation, and low demand for office space, Lincoln Yards seems to be stopped in its tracks until something breaks loose. The one building that is completed - 1229 W. Concord - has not signed any tenants for its 280,000 square feet of lab space.

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Bronzeville Lakefront

Approved in 2021, Bronzeville Lakefront is a $3.8 billion vision for redeveloping the former Michael Reese hospital site in Bronzeville. The 48-acre masterplan was led by Skidmore, Owings & Merrill for a consortium of developers operating under the name GRIT Chicago. 

Phase 1 of the project was set to produce the ARC Innovation Center and Bronzeville Community Center. Spanning 500,000 square feet and poised to rise 178 feet, the building was planned to be anchored by Sheba Medical Center and the Bronzeville Community Center. The ground floor of the building would hold multiple retail spaces and the community center with the upper portion of the structure set to hold laboratories and office space for life sciences tenants.

In 2023, former Mayor Lori Lightfoot joined the developers and city officials to break ground on the megadevelopment, where the developers would begin with infrastructure works. Now at the end of 2024, work is languishing with no firm timeline on construction of the development. The site has been involved in rumors and suggestions that the Chicago Bears should and may be considering the site for their domed stadium amid pushback regarding their plans for a new lakefront stadium that would include a heavy bill for taxpayers.