The Real Deal Chicago

USG signs big lease extension at global HQ in West Loop

Building materials manufacturer keeps 8 floors at 550 West Adams, and intends to renovate
By John O’Brien | February 14, 2019 01:00PM

USG CEO Jennifer Scanlon and 550 West Adams Street

USG Corporation signed a 10-year lease extension to remain at its global headquarters in the West Loop.

The building materials manufacturer inked the extension with landlord GLL Real Estate Partners for 220,000 square feet, according to Cushman & Wakefield, which represented USG in the lease negotiations. USG has offices on floors 11 to 18 at the 550 West Adams Street building. Cushman will serve as project manager for USG as it renovates its space.

Cushman’s Chris Wood said USG looked at other existing spaces Downtown as well as options for anchoring a new development, but ultimately decided to stay put. He said the lease was restructured as part of the extension, but terms of the deal were not released.

Along with Wood, Cushman’s David Stefancic and Brian Duffy represented USG. Joy Jordan and Emily Marquardt of Telos Group represented GLL, a Munich-based real estate fund manager. GLL bought the building in 2015 for $185 million, Crain’s reported at the time.

USG is staying put even as some other major Downtown office tenants have decided to move into new office towers.

CNA last year moved into 290,000 square feet at 151 North Franklin Street, and Bank of America plans to move into 500,000 square feet in the new tower that Riverside Investment & Development and Howard Hughes Corporation are building at 110 North Wacker Drive.

Salesforce, meanwhile, plans to take 500,000 square feet and the naming rights in the 57-story Wolf Point South office tower that Hines and the Kennedy family are building.