Vertical Farm Startup Leases Chicago Office for Indoor Crops

A startup wants to turn corporate towers into vertical farms in the heart of the Loop’s struggling office market.

Farm Zero signed a five-year lease for 9,000 square feet at 125 South Wacker Drive, a 31-story tower owned by Ivanhoe Cambridge, across the street from Willis Tower, CoStar reported.

It’s the company’s first long-term lease in a planned series of downtown ventures aimed at turning older office space into indoor farms.

The startup, led by CEO Russell Steinberg, plans to grow microgreens, leafy greens, herbs and flowers at commercial scale within its Loop headquarters. Steinberg said Farm Zero’s model using rack systems, LED lighting and nutrient-fed water containers aims to reduce food miles and cut waste in the city’s supply chain.

The space sits on the lower level of the building, allowing streamlined deliveries via Lower Wacker Drive. Produce will be distributed to restaurants, caterers, hospitals and directly to residents through subscription services.

Farm Zero previously operated a small farm out of 30 North LaSalle Street, where it tested growing cycles for crops like broccoli, romaine and basil. That building is slated for partial conversion to apartments under a city initiative, prompting Farm Zero’s search for another space.

Securing a long-term location was critical to proving the concept in Chicago. Having a permanent base will allow potential clients to see and taste the product before signing on, consultant Suzet McKinney said.

The company has eight employees, including students from the Chicago High School for Agricultural Sciences, and plans to expand hiring.

The building, owned by Canadian real estate giant Ivanhoe Cambridge and managed by Hines, is about 23 percent vacant, according to CoStar. It was built in 1974 and renovated in 2019.

Other firms have pitched office-to-agriculture conversions, hinting at another possible avenue to reuse outdated office buildings.

The trend of office-to-residential conversions, such as the $51 million project at 65 East Wacker Place, highlights the challenges older office buildings face in attracting tenants. But even fully leased towers are showing signs of strain: next door, Sterling Bay just put its 15-story building at 311 West Monroe Street on the market to head off a loan maturity.

— Judah Duke