Today’s market now faces an important question: What is the highest and best use going forward for these out-of-favor office assets? The City of Chicago has a view and has taken action to mitigate the oversupply issues weighing on the office market by providing additional funds for developers who plan to convert vacant office buildings into housing in the struggling LaSalle Street corridor. The trend is already underway as Chicago had the second-most office-to-apartment conversions of any city in the U.S. through 2021. Owners who are unable or unwilling to invest in their buildings or negotiate with tenants to lease up their assets may struggle, likely causing headline statistics to deteriorate further. Yet, these short-term hurdles ought to bring down asking prices and allow new investors to enter the market at a low basis, providing them with the financial flexibility to renovate their buildings and negotiate with tenants in order to stabilize Chicago’s office market.