Ad agency shrinks downtown footprint by 60%

An advertising agency’s move is adding to a downward trend in Chicago’s office market. 

Havas leased 33,000 square feet in the redeveloped Marshall Field building at 24 East Washington Street, which is owned by Brookfield Properties. Havas will move this fall from its 92,000-square-foot space at 36 East Grand Avenue in River North, Crain’s reported. 

JLL brokers Matt Carolan and Amy Craig represented Havas in lease negotiations, while Jack O’Brien and J.D. Parcheta of Telos Group represented Brookfield.

A combination of evolving work dynamics and an upcoming lease expiration influenced Havas’ decision. Rather than investing in renovations for post-pandemic lifestyles, the company sought a fresh environment to align with its creative ethos.

Creative workers “don’t necessarily want to be trapped at a desk,” Havas president Myra Nussbaum told the outlet. “That was a huge appeal of this building.” 

Chicago had another record month of office vacancies in the fourth quarter, and Havas’ move indicates that more market correction is in store.

The transaction is a 59,000-square-foot ding to the city’s office leasing stats, but it’s another tally in the win column for Brookfield, which scored a handful of leases for the Marshall Field building last year. 

Insurance company Argo Group signed a long-term lease last month to occupy about 20,500 square feet on the ninth floor of the building. Logistics firm Spot and food-ingredient supplier Olam International leased a combined 111,000 square feet at the building. 

Marshall Field is almost 70 percent leased, the outlet reported. The average office occupancy rate in Chicago is about 76 percent. 

—Quinn Donoghue 

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