Logistics Firm Lists Two-Floor Sublease in Downtown Chicago

Traffic Tech is looking to sublease its two-floor East Loop headquarters, Crain’s reported. It’s a surprising reversal for one of the logistics industry’s key players.

The Chicago-based third-party logistics provider tapped brokerage Vestian to market 54,800 square feet at 111 East Wacker Drive, part of AmTrust RE’s troubled Illinois Center complex.

The listing covers the building’s 24th and 25th floors, connected by an internal stairwell, with a lease running through May 2034. Vestian brokers Boris Shraybman and Emma DeCaigny are marketing the space.

Traffic Tech’s move comes just four years after it expanded its space at Illinois Center, adding 20,000 square feet in 2021 as part of a post-pandemic surge in supply chain optimization.

Logistics firms were seen as rare bright spots at the time, with companies like Spot Logistics, Loadsmart, Total Quality Logistics and MoLo Solutions all expanding their downtown Chicago offices to meet booming e-commerce demand.

The sublease offering signals a shift. While Traffic Tech has not commented on the reasons behind the listing, many firms are rethinking their workspace needs in the face of hybrid work, economic uncertainty and recent trade policy moves, such as the tariffs threatened by President Donald Trump, which have chilled purchasing activity and hit freight demand.

Office sublease availability in Chicago has steadily declined each quarter since the end of 2023, according to Colliers. The sublease availability rate was 3.5 percent in the first quarter, down from 4.8 percent in the same period last year. Downtown Chicago’s office sublease inventory has fallen from a peak of over 8 million square feet at the end of 2023 to about 5.6 million square feet today, according to CBRE.

Illinois Center, the two-tower, 2.1 million-square-foot complex, has its own troubles. Owner AmTrust RE is facing a foreclosure lawsuit tied to a $260 million mortgage.

The listing landed months after MoLo Solutions doubled its Chicago sublease offering to nearly 94,000 square feet.

Most of Chicago’s office buildings with the greatest sublease exposure are in the West Loop, including 601W’s historic Old Post Office, with over 232,000 square feet of available sublease space at 433 West Van Buren Street, according to Colliers.

— Judah Duke