JPMorgan Chase just added a rare tally to the win column for downtown Chicago’s office market.
The financial services giant aims to renovate its 55-story namesake tower, at 10 South Dearborn Street, from top to bottom, the Chicago Sun-Times reported.
The renovation will create a more conducive work environment for its 7,200 employees, the company said.
JPMorgan’s commitment to the Central Loop district is a big win for an office market that’s grappling with record-high vacancies amid lingering remote-work trends, which have prompted a slew of companies to downsize their operations since the pandemic.
JPMorgan’s renovation plans represent the greatest movement downtown since Google made plans to buy and occupy the Thompson Center by 2026.
“I think between Google and ourselves, there’s a lot of good that’s going to be accomplished here,” Tony Maggiore, chairman of JPMorgan’s Midwest leadership team, told the outlet.
While JPMorgan has opted to stay put, a handful of other financial institutions, like Bank of America and BMO Financial Group, have relocated to Fulton Market or other parts of the West Loop, often slashing their office footprint in the process.
Andy Davidson of Transwestern highlighted the challenges JPMorgan would have faced if it had pursued a similar relocation, including the difficulty of selling its current tower amid plummeting office property values, declining rents, high interest rates and a tough lending climate.
The renovation plan calls for reconfiguring office layouts to promote collaboration, redesigning the lobby and mezzanine areas and adding amenities such as a fitness center and improved food hall, the outlet said.
The sunken plaza will undergo landscaping and seating redesigns, with improved public access to “The Four Seasons” mosaic by Marc Chagall. While specific costs were not disclosed, the project is expected to commence soon and take approximately two years to complete, Tony Maggiore,
He noted that the enhancements would also benefit other office tenants in the building, such as Exelon.
Despite downtown Chicago’s sky-high office vacancy rate, JPMorgan is optimistic about the project’s potential to rejuvenate the area while catering to the evolving needs of its workforce.
—Quinn Donoghue
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