News

The recent foreclosure of 1751 Lake Cook Road in Deerfield by Sound Point Capital is the latest tremor in an already unstable suburban Chicago office market. The 214,000-square-foot Class A property, previously owned by Stanton Road Capital, now finds itself under distress—another casualty of mounting vacancies, elevated interest rates, and changing work patterns that continue to reshape commercial real estate in the suburbs.

This isn’t just about one building losing a lender—it’s about the growing disconnect between outdated office space and today’s tenant expectations. The Deerfield property, situated in a once-thriving corporate corridor along Lake Cook Road, had struggled with leasing despite its size and location. And while the terms of the foreclosure weren’t disclosed, industry insiders view it as part of a broader pattern: suburban landlords who bought during peak valuations in the 2010s now face steep refinancing cliffs in a very different lending environment.

Deerfield’s office submarket has been particularly vulnerable. While average asking rents hovered around $28.83 per square foot in late 2023—a modest 2% year-over-year gain—vacancy rates remained high at 18.35%. The neighboring North Market subregion, which includes parts of Bannockburn, Northbrook, and Lincolnshire, reported direct vacancy rates of 25.1% in Q1 2024, underscoring the scale of the issue.

Still, not all news is bleak. In early 2025, Fortune Brands Innovations Inc. announced it would consolidate its U.S. regional offices into a new corporate headquarters—also in Deerfield. Over 1,000 professionals are expected to relocate to the area by 2027, potentially injecting new energy into the local office ecosystem. Whether this demand will be enough to absorb existing vacant space—or encourage redevelopment of distressed assets like 1751 Lake Cook Road—remains to be seen.

The implications of this foreclosure are significant:

• Valuations across Lake Cook Road may continue to decline, especially if more distressed assets hit the market.

• Investor sentiment could sour further, leading to a tightening of suburban office lending.

• However, opportunistic investors might view properties like 1751 Lake Cook as ripe for repurposing—into medical office, life sciences, or even mixed-use residential.

Deerfield now sits at a crossroads. The foreclosure at 1751 Lake Cook Road may be a warning signal—but it’s also a call to adapt. The suburban office market is no longer what it was—and for those paying attention, that could be exactly where the opportunity lies.

If you would like to learn more about the Deerfield commercial real estate market or the Chicago market in general, our team would be happy to chat!