Chicago Aviation Department Office Lease one of Year’s Biggest

The Chicago Department of Aviation one of the largest suburban leases of the year, at US Cellular Plaza, a critical step in advancing O’Hare’s multi-billion-dollar transformation.

The department secured just under 100,000 square feet, five floors of the 11-story building at 8420 West Bryn Mawr Avenue, Crain’s reported. The lease is a major boost for the Charlotte-based property owner, FCA Partners, which recently invested $15 million to upgrade the three-building 637,000-square-foot complex near Chicago O’Hare International Airport.

Avison Young’s Fred Ishler represented CDA in lease negotiations, while Colliers’ Jonathon Connor, Jason Simon and Francis Prock represented FCA Partners.

The move will house hundreds of workers integral to the $8.5 billion O’Hare 21 project — a modernization initiative aimed at expanding airport capacity and upgrading infrastructure.

The office space will consolidate operations for more than a dozen contractors, moving them from the Aviation Administration Building, owned by the City of Chicago, at 10510 West Zemke Road.

The O’Hare submarket has been relatively resilient amid challenges in the office market due to remote work trends. With a 25 percent vacancy rate — significantly lower than the suburban average of 31.4 percent — office buildings near O’Hare remain attractive to tenants, data from JLL shows.

Chicago City Council approved the lease in September, initially for 79,000 square feet, before updated workforce projections increased the department’s needs to 99,400 square feet.

“As O’Hare 21 progresses, the CDA is preparing to fulfill growing obligations under its agreements with partner airlines,” the department stated. “The additional space from this lease, along with approximately 80,000 square feet freed up by the relocation of consultants and staff from the 10510 West Zemke building, ensures the CDA, its employees, contractors and consultants have the necessary resources to meet these commitments effectively.”

Other recent activity in the O’Hare submarket includes Glenstar and Wayzata Investment Partners’ plans to upgrade Chicago’s Presidents Plaza office complex.

Those renovations, which follow a $60 million recapitalization, will aim to modernize the two-building complex, at 8600 and 8700 West Bryn Mawr Avenue, with speculative suites, improved common areas and amenities like open-ceiling offices, conference rooms and a golf simulator.

Additionally, investors Parag Patel and Kevin Patel recently acquired a 200-room Marriott Courtyard at 2950 South River Road, near O’Hare. They plan to invest up to $5 million in renovation to enhance its appeal due to its proximity to the airport and Rivers Casino Des Plaines.

— Andrew Terrell