Downtown office development has slowed somewhat, but some developers are still bullish on the potential for ground-up projects. One of the city's busiest developers just bought two sites near Willis Tower, with plans to add 2.4M SF of office to the pipeline.

Murphy Development Group acquired two parcels at 301 South Wacker and 321 South Wacker. Murphy chairman John Murphy wants to build twin 48-story office towers, each with a 1.2M SF footprint, according to Crain's. The seller, InSite Real Estate, will remain involved in the project.

John projects the development will cost $800M and take two years to complete. He doesn't see any shortage of demand for office space in this market. John is also well into redeveloping the offices above the Oriental Theatre into a Cambria Hotel & Suites and is spearheading the redevelopment team for the Cook County Hospital site, while CIM Group invested in a 46-story apartment tower Murphy is proposing at 1326 South Michigan. [Crain's]