FINRA Expands Downtown Chicago Office Space

A major tenant is backtracking on office cuts in the Loop, this time under marching orders from the Trump administration.

The Financial Industry Regulatory Authority has expanded its office space at 101 North Wacker Drive by more than 25,000 square feet, according to Crain’s. That brings its lease to about 70,000 square feet, more than it held before a downsizing move last year.

The expansion comes less than a year after FINRA reduced its Chicago office presence to 45,000 square feet when relocating from 55 West Monroe, citing its hybrid work approach.

The regulator’s renewed appetite for space is tied to a recent executive order from President Donald Trump requiring all federal agencies and related entities to end remote work and return to in-person operations, sources told the outlet.

Telos Group’s Jeff Dowdell oversees leasing at the 24-story 101 North Wacker, while CBRE’s Tony Coglianese, Bill Sheehy and Brady Wolfe repped FINRA on the expansion.

FINRA is a private nonprofit that is overseen by the U.S. Securities & Exchange Commission and enforces rules for Wall Street brokerages. The agency employs over 4,200 people nationwide.

Its decision to grow its downtown Chicago space bucks the dominant trend across the Loop, where a record-high vacancy rate and widespread downsizing have plagued landlords since the pandemic.

But Wacker Drive has seen its own mini-revival of tenant interest lately, though largely drawn from the strong pull of updated office spaces. AmTrust RE scored two new tenants and three renewals at its renovated 1 East Wacker Drive, and Beacon Capital Partners a 27,000-square-foot lease from food and beverage tech firm JBT Marel, on the 34th floor of the renovated 333 West Wacker Drive.

The reversal is a win for LaSalle Investment Management, which owns the 663,900-square-foot tower and now counts FINRA as its largest active tenant.

The building is roughly 76 percent leased, about average for downtown properties, but has seen major attrition, including freight firm TTX vacating its headquarters in 2023.

LaSalle struck a deal late last year with its lender, Allianz Life Insurance Company of North America, to reduce its $116 million mortgage balance to $90 million. The exact terms remain unclear, but the move likely reflects the building’s diminished value in what’s largely stayed a high-interest, low-demand market.

The deal also provides a dose of good news amid broader instability in the federal real estate landscape. The Trump administration has directed agencies to slash leases nationwide and curb regulation, breeding tension between federal workforce goals and fiscal austerity.

CBRE’s Bill Sheehy, Tony Coglianese and Brady Wolfe negotiated the FINRA deal on behalf of the tenant. Jeff Dowdell of Chicago-based Telos Group handles leasing for LaSalle at the property.

— Judah Duke