New York-based proptech firm VTS is making a huge expansion in downtown Chicago, with plans to move from one Fulton Market building to another.
The company is moving into 36,000 square feet at 320 North Sangamon Street, a big leap from the 2,600 square feet it leases now at 312 North May Street, Crain’s reported.
VTS provides software for commercial landlords to manage leases and assets, and has grown its Chicago workforce during the pandemic, the outlet reported.
The deal is one in a recent series in the Fulton Market area that has fueled its rise to the most desirable office locations in Chicago. Last year, amid cautious leasing activity due to the pandemic, Fulton Market’s Class A availability shrunk slightly while the city has a whole saw it rise by 3 percent.
“Fulton Market has emerged as one of the hottest submarkets in the country, and we chose to establish ourselves in an innovative locale that employees want to come to,” VTS CEO Nick Romito said in a statement, Crain’s reported.
Its move is also a pledge to return workers to offices as other Chicago commercial tenants are cutting down on space, leading to this month’s record amount on the sublease market in the city’s central business district.
“What we’re seeing among our staff and the market at large is that talent wants to come into the office on a regular basis when offered a modern, convenient, and tech-enabled workplace,” VTS said in a statement to Crain’s.
The company last year purchased Chicago-based Rise Buildings for around $100 million. Rise has a mobile app that at the time was in approximately 350 buildings totaling more than 130 million square feet of office space that, among other services, can monitor worker movements to ensure adherence to Covid-19 safety protocols.
Robert Sevim and Jim Wenk in the Chicago office of Savills represented VTS in the lease negotiations, and Tishman Speyer’s Adam Mitchell and Ellen May oversee leasing at 320 N. Sangamon, Crain’s reported.
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[Crain’s] – Sam Lounsberry