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Commercial
Chicago

City will consolidate Downtown office space with big lease at 2 North LaSalle

With the new lease, the city is leaving spaces at 30 North LaSalle and 333 South State Street

Department of Fleet and Facility Management David Reynolds and 2 North LaSalle Street (Credit: Google Maps)
Department of Fleet and Facility Management David Reynolds and 2 North LaSalle Street (Credit: Google Maps)

The city of Chicago is downsizing its Downtown office footprint by consolidating two offices into a new space at 2 North LaSalle Street.

The city will take more than 222,000 square feet at 2 North LaSalle Street, the office tower owned by a Hearn-led joint venture. The city has an option to take an additional 75,000 square feet in the building by 2023, city officials said in a statement.

With the new lease, the city will soon leave a 262,000-square-foot space at 30 North LaSalle Street, where it has rented space for 25 years. It will also eventually leave a 169,000-square-foot office at 333 South State Street, also known as the DePaul Center.

In consolidating the offices, the city will shed more than 130,000 square feet of office space Downtown. Consolidating the offices into 2 North LaSalle will save the city $1 million annually, according to Mayor Lori Lightfoot’s press office.

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The move to 2 North LaSalle will begin next year, as its lease at neighboring 30 North LaSalle expires in August 2020, according to the city.

The new lease is a win for Chicago-based Hearn, which in 2016 partnered with New York-based Fortress Investment Group and Virginia-based Harbor Group to recapitalize 2 North LaSalle with a $42 million investment, Crain’s reported at the time.

The cash infusion was spent on building upgrades and a leasing push, as the building was one-third vacant at the time of the deal. WeWork has applied for a permit to build out three floors in 2 North LaSalle, but the co-working giant has not confirmed any plans for the building.

The city’s move out of 30 North LaSalle will likely sting for AmTrust Realty, which is seeking to offload the property as part of a portfolio of seven Downtown office buildings that could fetch the firm $1.3 billion.

The city departments of Law, Transportation, Fleet and Facility Management, Planning and Development Housing Division, Aviation and the city police board operate out of the offices at 30 North LaSalle. The city’s Department of Public Health operates out of the offices at 333 South State Street. The departments will be moved in phases to limit operation disruptions, according to the city.

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