Trouble ahead: Chicago office market is awash in subleases

Central business district has 4.4M sf of sublease space available, a huge uptick from April

Chicago /
Oct.October 01, 2020 12:00 PM
101 North Wacker Drive and Conversant CEO Bryan Kennedy (Google Maps)

101 North Wacker Drive and Conversant CEO Bryan Kennedy (Google Maps)

Digital media company Conversant is looking to sublease its entire Loop headquarters, the latest blow to a Chicago office market that has seen a growing number of firms trying scaling back or exiting their leases.

Conversant wants to sublease its 106,732-square-foot office at LaSalle Investment Management-owned 101 North Wacker Drive, according to Crain’s. Cushman & Wakefield is marketing the space. The listing is for the top four floors of the 24-story building, and represents the second largest sublease in Chicago since the start of the pandemic, according to Crain’s.

Firms across the city have been seeking to downsize and shed expensive office space as employees continue to work remotely because of the pandemic. The move has created a strain on the market.

Chicago’s central business district has more than 4.4 million square feet of sublease space available, up 37 percent since April 1, and 60 percent since the start of the year, according to Crain’s.

The automotive classified website Cars.com put a third of its Third Millennium-owned West Loop tower headquarters — about 50,000 square feet — on the market for sublease last month. In May, Groupon sought to sublease 150,000 square feet of office space at its 600 West Chicago Avenue headquarters.

Last month, WeWork abandoned plans to open two locations in Fulton Market. It bought out a pair of leases totaling 110,000 square feet.

And in July, software products firm CCC Information Services said it would scale back the amount of space it will lease at Shapack Partners and Focus’ 750,000-square-foot office building, also in Fulton Market.

Conversant initially opened three floors at 101 North Wacker in 2012. It then leased a fourth floor in 2016. [Crain’s] — Keith Larsen


Related Articles

arrow_forward_ios
 5400 Pearl Street in Rosemont and Montecito Medical Real Estate CEO Chip Conk (LoopNet, Montecito Medical)
Montecito Medical Real Estate drops $30M on Rosemont property
Montecito Medical Real Estate drops $30M on Rosemont property
BA Investment Advisors' Larry Elbaum and Jeff Bernstein with 9550 West Higgins Road (BA Investment Advisors, LoopNet)
BA Investment Advisors buys O’Hare office building for $40M
BA Investment Advisors buys O’Hare office building for $40M
Workspace Property Trust's Thomas Rizk and Roger Thomas with 1501 North Division Street in Plainfield, 2200-2222 Kensington Court in Oak Brook and 4 Parkway North Boulevard in Deerfield (Workspace Property Trust, Google Maps, Loopnet, Getty)
FL company buys three suburban offices in $1.1B deal
FL company buys three suburban offices in $1.1B deal
345 North Morgan Street; Wellington Management's Ed Steinborn (Sterling Bay, LinkedIn)
Financial firm moving to Sterling Bay’s new Fulton Market development
Financial firm moving to Sterling Bay’s new Fulton Market development
Crafty's Chris Ritter and 205 West Wacker Drive (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images, MLS Players Association and LoopNet)
Chicago start-up moves to Loop, expands office
Chicago start-up moves to Loop, expands office
John A. Buck II with  33 North LaSalle Street (Loopnet, Getty)
John Buck tests Loop waters with listing on LaSalle
John Buck tests Loop waters with listing on LaSalle
216 West Jackson Boulevard and 19 South LaSalle Street (Loopnet)
Loop office building owners face borrower woes
Loop office building owners face borrower woes
Willis Tower, One Prudential Plaza and Old Post Office Building (Willis Tower, One Two Pru, Post433)
Chicago office buildings among most expensive outside NYC
Chicago office buildings among most expensive outside NYC
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...