Irvine Company just scored a leasing deal that will help fill a void in its River North office tower, while slightly elevating Chicago’s record-high vacancy rate.
Law firm Crowell & Moring leased about 50,000 square feet across two floors in the 60-story building at 300 North LaSalle Street, Crain’s reported. It will relocate from the NBC Tower, at 455 North Cityfront Plaza, in Streeterville, where it occupies 75,000 square feet.
The reduction in footprint prolongs a troubling trend in Chicago that was triggered by the pandemic-fueled remote-work era. Last year, downtown experienced a net loss of office space for only the second time since the Great Recession, leading to a surge in vacancies and distressed properties.
Many companies opting for reduced space are gravitating to updated buildings in prime locations in hopes of luring employees back to the office. Evolving work needs have prompted a slew of landlords to upgrade their assets with added amenities and revamped office space.
For Crowell & Moring, the impending move to 300 North LaSalle coincides with California-based Irvine’s $30 million renovation of the 1.3 million-square-foot tower. The project aims to establish it as a “premium building where we will create a state-of-the-art space to foster creative collaboration with clients and colleagues,” Andrew Avsec, Crowell’s Chicago office managing partner, told the outlet.
The Crowell & Moring lease also puts a dent in the 850,000-square-foot hole created by the loss of the building’s two largest tenants: Kirkland & Ellis and Boston Consulting Group. Law firm Winston & Strawn filled some of that void last year, when it leased 150,000 square feet. Real estate investment trust Ventas is also close to finalizing a 50,000-square-foot lease in the building.
The owner of 455 North Cityfront Plaza, German investor Metropolis Investment Holdings, is on the hunt for tenants in light of Crowell & Moring’s planned departure. However, Metropolis isn’t in dire straits like many other office landlords in Chicago, as it has no debt on the building and appears to be on solid financial footing, the outlet said.
—Quinn Donoghue
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