Fulton Market development site next to shuttered Time Out food hall hits the market

May 26, 2026 - 20:09

A Chicago investor has put a 296-room hotel development site in Fulton Market back on the market, this time highlighting the opportunity to build larger by using unused air rights from the neighboring property. The parcel sits directly next to the now-shuttered Time Out Market food hall, which closed its doors earlier this year after struggling to draw consistent crowds in the competitive West Loop dining scene.

The site, which has been approved for a hotel project, is being marketed with a new twist: the seller is pitching the chance to acquire additional development capacity from the adjacent building. That could allow a buyer to expand the footprint or height of the proposed hotel beyond what current zoning permits. The unused air rights effectively increase the total square footage available for construction, making the property more attractive to developers looking to maximize returns in one of Chicago's hottest neighborhoods.

Fulton Market has seen explosive growth over the past decade, with former industrial warehouses transformed into trendy offices, restaurants, and high-end hotels. But the area has also faced headwinds recently, including rising interest rates and a slowdown in new construction. The Time Out Market closure, which was once seen as a major draw for the corridor, adds another layer of uncertainty.

The listing comes as hotel development in Chicago remains uneven. While leisure travel has rebounded, business travel and large conventions have not fully returned to pre-pandemic levels. The seller, who has owned the site for several years, is betting that the flexibility of air rights will lure a buyer willing to take on the project despite the current market conditions. No asking price has been disclosed.