- Related Midwest is progressing four significant Chicago projects while institutional investors remain largely inactive.
- The firm’s slate spans multifamily, office, tech, and sports assets, including the 400 Lake Shore Drive tower and Illinois Quantum Park.
- Related’s high-risk, city-focused strategy signals a contrarian bet on Chicago’s long-term growth despite current developer headwinds.
Chicago’s Institutional Exodus
Related Midwest is pressing ahead with four large-scale developments in Chicago, even as major institutional investors pause new projects in the city. Bisnow reports that Related is bucking local development trends, deepening its exposure across multiple asset classes while most peers cite concerns over property taxes, politics, and financing. The company’s bullishness marks it as an outlier at a time when most capital sources perceive Chicago as too unpredictable.
In a city regarded just five years ago as a global gateway market, developers with institutional backing are now hard to find. According to Reagan Pratt, director of DePaul University’s Real Estate Center, Chicago has been “quasi-redlined” by the capital markets—a stark reversal from its historic status as a safe haven for big equity. Lower development risk premiums at Related, coupled with parent company backing, let the firm outpace most competitors for local pipeline scale and diversity.
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The Details
Related’s four headline projects include the multifamily skyscraper at 400 Lake Shore Drive, slated for 635 new units and currently the largest such project in Chicago’s pipeline. The company just launched leasing for the 72-story tower, projected to deliver by March 2027.
On the South Side, Related and partner CRG are advancing the 128-acre Illinois Quantum and Microelectronics Park, buoyed by $500M in state funding and secured tenancy from PsiQuantum, Pasqal, IBM, and Diraq. In office, Related landed Sidley Austin for over half of a new 1M SF Fulton Market trophy tower, targeting completion by 2030. Finally, the firm is leading The 78 megadevelopment, anchored by a 22,000-seat Chicago Fire soccer stadium set to open in Q2 2028.
Outpacing a Soft Market
Comparatively, Related’s multi-asset push stands in contrast to a wave of developer retrenchment citywide. Per Bisnow, most institutional capital remains on the sidelines, discouraged by unpredictable property taxes and the high cost of capital. Meanwhile, more than 4,200 Chicago apartments have recently hit the market, adding another test for multifamily investors.
Notably, other major developments have stalled, and the local multifamily pipeline sits at historical lows. Even The 78, once slowed by the University of Illinois pulling out of a $285M anchor commitment, now leans on soccer to fuel momentum. Related’s willingness to capitalize on dislocation and its capacity to secure equity position its slate as one of the few robust pipelines in Chicago today.
Why It Matters
Related Midwest’s approach could shape a new cycle for Chicago’s commercial real estate, counteracting a risk-averse environment set by institutional investors. The scale of these projects—spanning 635 new apartments, more than 1M SF of high-end office, and a massive tech park—signals confidence in the city’s long-term fundamentals as others hesitate. According to Bisnow’s reporting, the state’s $500M quantum park commitment and Related’s track record of landing blue-chip tenants like Sidley Austin and IBM demonstrate that Chicago can still compete for institutional users and talent when the right developer is in play.
The market’s current stagnation has made Related’s momentum even more striking. The new supply from projects like 400 Lake Shore Drive is set to help mitigate an inventory squeeze, with Chicago’s multifamily vacancy at a tight 4.2% per CBRE’s Q2 2026 report. In the office sector, the Fulton Market anchor lease may set a new benchmark for trophy high-rises in a city now short on landmark deliveries. By diversifying across asset types, Related is able to hedge sector-specific risks—betting that city-scale mixed-use projects, tech infrastructure, and lifestyle-oriented amenities can still attract equity, tenants, and civic support even in a tougher climate.
What’s Next
As Related progresses construction and leasing on its four major projects, the industry will be watching for signals of tenant absorption and capital inflows. The leasing velocity at 400 Lake Shore Drive and the quantum park’s next phase will serve as immediate bellwethers for demand.
City officials and developers alike will be monitoring The 78’s stadium timeline and the outcome of city approvals for the Fulton Market office tower. Should these projects achieve milestones as scheduled, Related’s blueprint may inspire renewed investment discipline—or more opportunistic bets—from other capital sources as Chicago seeks to rebuild its gateway status.
