Adtalem Global Education is set to expand its downtown headquarters with a larger office space Willis Tower.
Adtalem inked a deal for 84,000 square feet across two non-contiguous floors in the iconic skyscraper at 233 South Wacker Drive; the education company will move from the 54,000 square feet it leases at 500 West Monroe Street, Crain’s reported.
Adtalem will use the two floors in the 110-story skyscraper to accommodate both its administrative headquarters and a training center.
The move is a boon for EQ Office, Blackstone’s real estate arm and owner of Willis Tower. Its recent investment in renovations and upgrades has brought the building’s occupancy to 86 percent, according to CoStar Group, notably higher than the average downtown occupancy rate of 74 percent.
JLL brokers Meredith O’Connor and Jamie Wallenberg negotiated the lease on Adtalem’s behalf, while Telos Group represented EQ Office.
The company’s decision to increase its footprint instead of downsizing bucks the ongoing pattern in downtown Chicago. The lease gives Adtalem room to expand its operational capacity.
Following a focused pivot to healthcare training, Adtalem, headed by CEO Steve Beard, recorded an 11.2 percent increase in student enrollment and a 13.2 percent revenue gain over the past year.
Meanwhile, Spear Street Capital, which owns 500 West Monroe, will need to address the loss of its third-largest tenant. The firm is already navigating vacancies, with Antares Capital recently exiting 70,000 square feet, and Motorola Solutions seeking sublease tenants.
Other big office leases in Chicago this year include PwC’s 10-year renewal for 280,000 square feet at 1 North Wacker Drive last month, one of the largest renewals in recent years. And Vizient expanded its lease at the Old Post Office a couple of weeks ago, to nearly 190,000 square feet, defying the trend of office downsizing.
— Andrew Terrell