Tishman extends West Loop tower leases, albeit in downsizes
Law firm, insurance company cut space by collective 39,000 sf
Two more West Loop tenants are downsizing their office footprints.
Law firm Katten Muchin Rosenman and insurance provider Chubb signed new leases in their same West Loop building, but downsized the space covered in the lease, Crain’s reported.
The law firm signed a new 11-year lease for 204,000 square feet in its longtime home at 525 West Monroe Street. The building’s owner Tishman Speyer announced the deal, which is a small downsize from the 220,000 square feet its previous lease covered.
Chubb also signed a new lease for the same building. The insurance company will occupy 92,000 square feet, down from the 115,000-square-foot space it currently leases.
While the smaller leases add to the 25-story building’s vacancy, they also strengthen the property’s rent roll and keep the building mostly full. At 83 percent leased, the 900,000-square-foot building is slightly ahead of the 79 percent average for downtown office buildings as of the end of 2022. LinkedIn and Associated Bank are also tenants in the office building.
Tishman Managing Director Nooshin Felsenthal said the deals “speak to the broader demand among leading companies to house their workforces in top-tier environments supported by world-class operators that possess the resources and proven ability to cultivate unique and dynamic tenant experiences,” in a statement about the lease renewals.
Built in 1983, the Tishman Speyer-owned building is undergoing a $15 million renovation that includes a new outdoor plaza, entrance, lobby and restaurant area. Tishman Speyer said it plans to emphasize the revamped space when it markets 120,000 square feet that will become available early next year.
Part of the renovation will include two new outdoor terraces that will be built for Katten’s exclusive use.
“We always came back to the fundamental point that our location is ideal, and we were getting a commitment [from Tishman] to make the space brand-new,” Gil Soffer, managing partner of Katten’s Chicago office, told the outlet.
— Victoria Pruitt