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Chicago

Logistics firm adds offices to Fulton Market sublease options

Flock Freight listing 31K sf at 318 North Carpenter

Flock Freight Puts Fulton Market Office Up for Sublease
Flock Freight CEO Oren Zaslansky and 318 North Carpenter Street (Google Maps, weforum.org)

Another logistics firm is ready to reduce its Fulton Market real estate footprint.

Supply chain company Flock Freight has hired Stream Realty Partners to market two floors totaling 31,000 square feet of space at the eight-story 318 North Carpenter Street for sublease.

The firm intends to continue occupying one floor but has listed both floors to cast a wider net for potential sublease tenants, according to a person familiar with the offering.

The listing comes weeks after another Fulton Market logistics company, MoLo Solutions, put 47,000 square feet in the 17-story office building at 167 North Green Street up for sublease.

Three other Fulton Market tenants added a total of 92,000 square feet of sublease space to the market earlier in the summer, creating an opportunity for office tenants that might want to move into the trendy former meatpacking district to do so. 

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CBRE’s Brad Serot said brokers are starting to see an increase in sublease space demand as tenants have realized they can get more bang for their buck with high-quality secondhand space rather than seeking out brand new, customized spaces.

“There’s going to be such a big price discrepancy where tenants that are on the market are starting to take a harder look at sublease space because you can get a really advantageous real estate deal for your company,” said Serot, who is marketing Salesforce’s 125,000-square-foot sublease offering at Hines’ newly built Salesforce Tower at 333 West Wolf Point Plaza.

Chicago’s largest sublease deal since the start of the pandemic was recently signed, with online insurance marketplace GoHealth subleasing about 89,000 square feet from software provider VelocityEHS at the Merchandise Mart building.

Fulton Market space makes up relatively little of Chicago’s overall sublease market, which has come down slightly in recent weeks from a record-high inventory of 8 million square feet available on secondhand deals across the city. Chicago’s central business district sublease options consist of 383 spaces, with the Fulton Market/River West areas making up 6 percent of total square footage on the market.

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Flock FreightStream Realty Partners
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