Onni Group’s decision to pour millions into revamping its loop office tower continues to pay off, as it just landed another tenant to extend a hot streak.
Staffing and consulting firm Addison Group has signed a 12-year, 35,000-square-foot lease at 225 West Randolph Street, with plans to relocate from 125 South Wacker Drive next summer when its 32,000-square-foot lease there expires, Crain’s reported.
Canadian developer Onni Group is reaping the benefits of its $140 million overhaul of the 853,000-square-foot building, called the Bell. The firm was on the verge of locking down a trio of leases, combined for nearly 140,000 square feet, in March. Onni more recently secured a 30,000-square-foot lease from quantitative trading firm Aquatic Capital Management.
The leasing streak further demonstrates office users’ desire for updated, amenity-filled office space in light of the remote-work era, which has contributed to record-high office vacancies in 12 of the last 14 quarters. Chicago’s vacancy rate topped 25 percent for the first time ever last quarter, according to CBRE.
Onni’s renovation of the 31-story building includes transforming the top three floors into amenity space with an indoor-outdoor rooftop deck. The project is expected to be completed early next year.
The building is near the James R. Thompson Center, which is being redeveloped into Google’s Chicago offices.
The Bell’s leasing victories can be partly attributed to its Class L designation from Cook County, reducing property taxes for 12 years for developers undertaking major renovations of historic buildings. This incentive allows landlords to offer competitive rental rates, giving them an edge in the market.
Meanwhile, Addison Group’s departure will pose challenges for Ivanhoe Cambridge, the owner of the 31-story Wacker Drive building, since buying it for $145 million in 2017. The property is 77 percent leased, the outlet reported.
—Quinn Donoghue
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