Having Google as a tenant can give a landlord hope, even amid a crushing office market.
American Realty Advisors has listed its 520,000-square-foot Fulton Market complex that serves as the tech giant’s Midwest headquarters, according to Crain’s, citing a report in Real Estate Alert.
ARA wants around $360 million for the prime property at 1000 W. Fulton Market, the report noted. That would be nearly 20 percent over what it paid developer Sterling Bay for the complex in 2016.
Google, which occupies 387,000 square feet in the building, had been gobbling up Chicago office space leading up to the pandemic. In March 2020, it was set to more than double its local footprint, with space at four locations for a total of 1.3 million square feet.
For ARA, the decision to sell comes at a time when the local office market vacancy rate hovers at 15.5 percent and some projections show it could rise to 18 percent by the end of 2022. Recent retreats from the market include a scrapped 1.2 million-square-foot office and residential complex along the Chicago River, across from Goose Island; and a West Loop warehouse owner’s abandoned plans for loft-style office conversion.
At 1000 W. Fulton, Google’s lease runs through 2028. The property, known as 1K Fulton, is nearly completely leased, according to the report. Google moved into the 10-story property in 2015, and the company’s presence helped transform Fulton Market into one of the most popular dining, hotel and office spots in Chicago. Eastdil Secured has the assignment to sell the building.
[Crain’s] — Alexi Friedman