A brand-new mixed-use office high-rise is set to rise at 590 W Madison Street in Chicago’s West Loop Gate. The new development, spearheaded by Florida-based Third Millennium Group and Texas-based Hines, will replace an existing parking lot adjacent to the 540 W Madison office tower.
With a design by Goettsch Partners and Michael Hsu Architecture, this 28-story structure aims to meet the increasing demand for Class A office space in the city.
A Long-Awaited Development
The site at 590 W Madison has been earmarked for a future tower since the construction of its neighboring building, 540 W Madison. Initial plans from 2014 envisioned a taller skyscraper with a hotel component, but those plans never materialized due to an oversupply of high-end office space at the time. However, as the demand for premium office spaces rebounds, the development team has returned with a new approach that better aligns with the evolving commercial real estate landscape.
A Striking Design with Modern Amenities
The new 28-story tower is expected to stand approximately 450 feet tall, featuring a sleek and modern design. One of the standout features is a spiral of inset terraces that will provide outdoor spaces for tenants, offering views of the Chicago skyline. The building will include:
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605,000 square feet of office space
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50,000 square feet of amenity space
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10,000 square feet of retail space
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Potential shared parking facilities with the adjacent building
Chicago Yimby reports that among the many amenities designed to attract tenants are sports courts and a rock climbing wall, offering a unique fitness and recreation space within the building. These features are expected to help the project secure a major anchor tenant before construction officially begins.
Reviving a Long-Stalled Plan
Third Millennium Group and Hines are confident that this time, the development will proceed successfully. Their confidence is based on the increasing demand for modern office spaces as businesses seek high-quality workplaces that cater to employee well-being and productivity. The new design reflects a growing trend where office buildings incorporate green spaces and health-focused amenities to remain competitive in an evolving market.
Navigating Chicago’s Office Market Challenges
Despite the optimistic outlook, the developers face a challenging market. Many older office towers across Chicago have struggled with high vacancy rates since the shift to hybrid work models. Some buildings have even been sold at significant losses. However, the location of 590 W Madison—on the western edge of the Loop and near the rapidly growing Fulton Market district—offers a strategic advantage. Its proximity to commuter train stations could also make it an attractive option for corporate tenants.
Industry experts believe that while the building’s location may not be as prime as those along Wacker Drive or the Chicago River, it has the potential to draw interest due to the limited number of available sites for new developments. With Hines’ reputation for delivering top-tier office properties—such as the 60-story Salesforce Tower at Wolf Point—the new project has strong potential to succeed.
A Vision for the Future
The new office tower at 590 W Madison represents a fresh chapter in Chicago’s commercial real estate market. With a focus on premium office spaces, state-of-the-art amenities, and outdoor terraces, the development aims to provide a modern and desirable workspace for businesses. As planning continues and tenant negotiations move forward, all eyes will be on how this long-anticipated project unfolds.
DataBid is currently reporting on this project - 590 West Madison Street Mixed Use Development - Chicago (0084013025)
