Verizon Renews Chicago Suburban Lease but Trims Space

Verizon is the latest corporate heavyweight to shed office space in the Chicago suburbs, even as it commits to staying put for the long haul.

The telecommunications company renewed its lease at the Continental Towers in Rolling Meadows, cutting its footprint by about 20 percent to 128,900 square feet, according to Transwestern, which handles leasing for the property. The deal extends Verizon’s stay at 1701 Golf Road through April 2036 and reduces its space from nearly 160,000 square feet, Crain’s reported. CBRE’s Jon Springer and Andrew Kaplan represented Verizon in the lease extension.

The renewal offers a lifeline for Continental Towers, a four-building, 911,000-square-foot complex that’s been mired in foreclosure for more than two years. Its ownership venture — Rubenstein Partners of Philadelphia and Chicago-based Glenstar — was sued in 2023 over an alleged default on an $85 million loan tied to the property.

The debt, now controlled by Miami-based special servicer Rialto Capital on behalf of CMBS investors, has since been a test case for suburban office workouts.

Rialto’s deal with Verizon helps steady cash flow for the complex, which was only 53 percent leased as of July, well below the suburban average of about 68 percent, according to court filings.

“This extension is a good indication that a Class A property with stellar amenities and convenient access can draw and retain high-quality tenants,” said Transwestern’s Joe Stevens, who represented ownership in the transaction. Stevens and Steve Degodny handle leasing for the building.

Continental Towers has faced a turbulent stretch in recent years.

When Rubenstein and Glenstar paid $122 million for it in 2018, the property was nearly 90 percent leased. Soon after, major tenants including Komatsu and Panasonic exited more than 150,000 square feet combined, and the pandemic slowed backfilling efforts.

Ownership has since poured $28.5 million into upgrades, from lobby renovations to tenant amenities. Verizon, which has anchored the complex since 2016, is its largest tenant.

— Eric Weilbacher