Related Midwest Is Betting Big On Chicago While Others Hold Back
Bisnow · 11 August 2026
TL;DR
Related Midwest, the Chicago arm of Stephen Ross's Related Companies, has advanced four major developments across different asset classes in the past year — bucking a trend of institutional investors pulling back from Chicago. The projects include 400 Lake Shore Drive, a 72-storey, 635-unit apartment tower nearing completion on the lakefront; the 128-acre Illinois Quantum and Microelectronics Park on the South Side; a trophy office tower in Fulton Market anchored by law firm Sidley Austin; and The 78 mixed-use precinct, where the Chicago Fire's new 22,000-seat stadium broke ground in March 2026. Analysts note that Related benefits from deep parent-company capital and a lower perceived risk premium in Chicago than most institutional players currently carry.
Our take
For South African property readers, this story is less about Chicago and more about a universal development principle: when institutional capital retreats from a market perceived as high-risk — whether due to volatile property taxes, political uncertainty, or construction cost pressures — well-capitalised developers with local conviction can move counter-cyclically and capture outsized long-term value. SA investors and developers will recognise the dynamic. Johannesburg's inner city, parts of the Cape Flats, and several secondary metros have faced similar "quasi-redlining" by large institutional funds, creating openings for developers willing to do the hard work of understanding each asset class deeply. The Chicago model also illustrates the power of anchor tenants: a single committed occupant (Sidley Austin in office, the Chicago Fire in mixed-use) de-risks an entire precinct and unlocks surrounding development momentum. SA landlords and developers pursuing mixed-use nodes — from Waterfall City to the Durban Harbour precinct — should take note. The cautionary footnote from DePaul's Reagan Pratt is equally relevant locally: development momentum is cyclical, and even strong track records don't immunise a developer from market turns.