T
he demolition of the former Sears world headquarters in Hoffman Estates is underway, marking a significant shift towards data center projects in the area. Dallas-based developer Compass Datacenters has started tearing down the 273-acre property at 3333 Beverly Road, which was once a bustling office campus. The demolition is expected to extend into mid-2025, with millions of pounds of concrete being repurposed for the construction of new data center complexes.

    The transition from a retail giant like Sears to a tech-driven future underscores a significant economic evolution. The new data center complex is expected to attract $10 billion in investment, including funds from future tenants. The project is part of a broader trend sweeping through Chicagoland, where suburban office properties are being replaced with warehouses, data centers, or other industrial-style projects due to dwindling demand for traditional workspace and increasing need for cloud storage and logistics facilities.

    As companies increasingly relocate to urban areas, large suburban office campuses like the former Sears hub are left largely empty, leading municipalities to find replacements to fill the gaps. Nearby Elk Grove Village has already emerged as a significant Chicagoland data center market, and Hoffman Estates is following suit, with big names like Microsoft receiving approval for data center facilities in the area.

    The shift towards data centers is part of a broader strategy to future-proof commercial landscapes. Eric Palm, village manager of Hoffman Estates, emphasizes the importance of diversifying economic investments, similar to how one would diversify a personal investment portfolio. This strategy is also evident in the former At&T campus, which is being redeveloped into a $200 million "metroburb" with offices, shops, restaurants, conference space, storage, and amenities.

    The addition of retail and other uses to longtime office campuses is key to reviving these properties in the low-demand era for workspaces. The teardown on Beverly Road, which American Demolition Corp. is overseeing, is complex due to the scale and structure of the Sears campus. The project is expected to extend into mid-2025, with millions of pounds of concrete being repurposed for the data centers.

    "Tearing down the Sears complex isn't as simple as pushing over an old single-family home with a bulldozer," said Jeff Olson, project executive at American Demolition Corp. "We're chewing through the buildings as fast as we can, but as safely as we can."