CBRE will reduce its local footprint by relocating its Chicago office to an Irvine Company-owned tower in River North.
The commercial real estate giant is negotiating a deal to lease about 55,000 square feet of lower-floor space in the 60-story skyscraper at 300 North LaSalle Street, CoStar reported, citing people familiar with the matter.
CBRE broker Todd Lippman is negotiating the lease on the firm’s behalf, while Irvine is being represented by its own Greg Tait, Maggie Brophy and Jamion Hartley.
If the deal goes through, CBRE would exit its space in the 35-story tower at Hines’ 321 North Clark Street, where it occupies about 61,400 square feet.
The pending deal is part of Dallas-based CBRE’s strategy to adapt to changing office needs driven by hybrid and remote work trends. While the relocation reflects a slight downsizing, the firm is maintaining a prominent presence in the city.
Despite broader market challenges for office landlords, Newport Beach-based Irvine has maintained its financial stability, recently paying off a $471 million loan balance on 300 North LaSalle without refinancing. This move has allowed Irvine, headed by CEO Donald Bren, to preserve its focus on maintaining high-value assets in key markets.
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Irvine has also backfilled vacancies left by large tenants like Kirkland & Ellis and Boston Consulting Group. The landlord recently secured leases with law firms Winston & Strawn, White & Case and Crowell & Moring, as well as real estate investment trust Ventas. Collectively these firms occupy 310,000 square feet in the tower, which was developed by Hines in 2009.
Office users are seeking premium spaces post-pandemic, with such properties experiencing a vacancy rate of under 5 percent in downtown Chicago.
— Andrew Terrell