Chicago’s top office leases of Q2

The top three deals on the list account for more than 1M sf of combined Downtown space

Jul.July 24, 2018 03:00 PM

35 W Wacker, 433 W Van Buren Street, 131 S Dearborn Street, 71 South Wacker (Credit: daryl_mitchell via Flickr, irvinecompanyoffice)

Between moves, renewals and expansions, the 10 largest office leases signed during the second quarter of 2018 accounted for more than 1.5 million square feet of Downtown real estate.

Advertising and public relations firm Publicis Groupe’s stretch of its space at 35 West Wacker Drive represented by far the largest office lease signed so far this year, beating out Citadel’s renewal of its 418,000-square-foot space at 131 South Dearborn Street.

Aside from Walgreens’ announced move into 601W’s Old Main Post Office redevelopment and Rent24’s 100,000-square-foot co-working site on the Magnificent Mile, all the city’s largest office leases signed between April and June were for spaces in the Loop. The Willis Tower and Aon Center, respectively the city’s tallest and third-tallest buildings, both appear on the list.

Chicago’s Downtown office vacancy rate barely moved during the second quarter despite more than one million square feet of new capacity coming online, signaling an insatiable appetite for work spaces.

All numbers were compiled from reports published by brokerages Cushman & Wakefield and Newmark Knight Frank.

1. Publicis Groupe, 35 West Wacker Drive — 681,545 square feet

Property owners Piedmont Office Realty Trust and UBS filled the last of their remaining vacant office space in the 50-story Leo Burnett Building when they signed anchor tenant Publicis Groupe to an added 50,000 square feet. CBRE’s Drew Nieman and Christy Domin represented the landlord in the leasing deal, while Mike Christian and Steve Schneider of Cushman & Wakefield represented Publicis.

2. Walgreens, 433 West Van Buren Street — 200,000 square feet

Developer 601W Companies touted Walgreens last month as the first major tenant of its 2.8-million-square-foot redevelopment of the former Old Main Post Office, signing the drugstore chain to occupy about 7 percent of the hulking 105-year-old building starting in late 2019. Broker Telos Group represented the landlord in the largest new lease signed during the second quarter.

3. Sprout Social, 131 South Dearborn Street — 128,000 square feet

Software company Sprout Social doubled its footprint in the 1.5-million-square-foot Citadel Tower in April, not long after the building’s namesake tenant renewed its 400,000-square-foot lease. Houston-based Hines and New York-based Angelo Gordon have owned the property as majority stakeholders since 2016, and this year they’re spending about $100 million on upgrades to the building’s lobby and elevators.

4. Milliman USA, 71 South Wacker Drive — 116,000 square feet

Transwestern represented consulting firm Milliman in its June lease expansion in this 48-story office tower, which is owned and managed by Irvine Company Office Properties. The landlord also signed law firm Banner & Witcoff to a 32,000-square-foot lease around the same time.

5. Rent24, 500 North Michigan Avenue — 100,000 square feet

The German-owned co-working firm Rent24 leased its second location in the city this spring with 100,000 square feet at the base of this 24-story Magnificent Mile tower. Cushman & Wakefield’s Barbara Schenberg, Lenora Adds and Chris McKinney brokered the lease on behalf of the landlord, a joint venture led by New York investor Samuel Schapira.

6. Revantage, 233 South Wacker Drive (Willis Tower) — 66,000 square feet

Property owner Blackstone confirmed it signed real estate consulting firm Revantage to a 66,000-square-foot lease inside the city’s tallest tower. Three years after Blackstone bought the 45-year-old supertall for $1.3 billion, the firm is in the middle of a $500 million project overhauling the building’s lobby and adding a three-story wrap-around annex.

7. Slalom, 200 East Randolph Street (Aon Center) — 65,000 square feet

In another big lease for 601W Companies, the landlord signed business consulting firm Slalom to two floors in the city’s third-tallest tower. Telos Group brokers Matt Pistorio, Steve Smith and Caroline Colnon represented 601W on the lease.

8. Lincoln International, 110 North Wacker Drive — 60,000 square feet

Three years ahead of their tower’s projected completion, Howard Hughes Corp. and Riverside Investment & Development leased mergers-and-acquisitions firm Lincoln International to about 4 percent of the space inside the 1.4 million-square-foot office tower, set to join anchor tenant Bank of America. Broker CBRE represented the landlord and Savillis Studley repped the tenant on the lease.

9. Travelers Indemnity, 161 North Clark Street — 60,000 square feet

Insurance company Travelers Indemnity renewed its lease in the 49-story Grant Thornton Tower, which is owned by CBRE Global Investors. Newmark Knight Frank’s Bill Rolander, Jon Cordell and Jason Houze represented the landlord in the deal, while Scott Goldman of Cushman & Wakefield represented the tenant.

10. Crowe, 225 West Wacker Drive — 51,000 square feet

Accounting firm Crowe beefed up its lease in the 31-story Wacker Drive tower in a deal with its landlord, Korea-based Mirae Asset Global Investments. Scott Goldman and Josh Feldman of Cushman & Wakefield represented Crowe in the deal.

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