Kellogg lists River North space for sublease ahead of split
Food company tapped JLL to market the space
Ahead of plans to move a spinoff company to Chicago, Kellogg is looking to sublease its River North office space and find a new headquarters for the future company.
The breakfast foods company hired JLL brokers Brad Despot and Kerry Middleton to find a new tenant for the 39,000-square-foot boutique office building at 412 North Wells Street, CoStar News reported. Kellogg’s lease covers part of the ground floor and all eight floors above.
The wedge-shaped property runs along the elevated CTA train tracks at the intersection of North Wells and West Hubbard streets.
“We’ve determined that our downtown Chicago office space is not fully meeting the needs of our collaborative culture,” spokesperson Kris Bahner told the outlet. “As such, we are planning to sublet the current downtown office space and identify a new downtown location for our Chicago-based employees and visitors to work.”
Back in June, Kellogg announced plans to split into three separate, publicly traded companies by the end of this year. The largest of those so far unnamed companies is a snack company that accounts for about 80 percent of the company’s total sales. The subsidiary, whose brands include Pop-Tarts, Cheez-It, Nutri-Grain, Pringles and Rice Krispie Treats, will be headquartered in Chicago and employ about 300 Chicago-area people.
In August, Kellogg CEO Steve Cahillane sold his Lincoln park home for $6.2 million before it even hit the market. Cahillane will stay on to lead the new Chicago-based Kellogg snack company.
The Wells Street space will add to the near-record 98.1 million square feet of available office space in the Chicago area. In a similar deal, Tyson Foods, which is relocating its Chicago office to its Arkansas headquarters, recently listed the 233,000-square-foot building it leases at 400 South Jefferson Street in one of the largest subleases in the city since the pandemic.
— Victoria Pruitt