Mars Eyes big Fulton Market Office Spaces

Mars is gearing up for a major office expansion in Chicago’s Fulton Market, teeing up what could be one of the neighborhood’s larger recent leases as it absorbs snack giant Kellanova.

The McLean, Virginia-based company has tentatively reached an agreement to lease a large block of space at the building at 400 North Aberdeen Street, according to people familiar with the deal. If finalized as expected, the lease would likely exceed 100,000 square feet and further cement Mars’ presence in Chicago following its $36 billion acquisition of Kellanova, CoStar reported.

The 16-story building’s biggest contiguous space availability is roughly 170,000 square feet, according to CoStar data, putting Mars in position to anchor a sizable portion of the building.

Mars recently completed its acquisition of Kellanova, the Chicago-based spinoff from Kellogg that houses brands including Cheez-It, Pringles, Pop-Tarts, Rice Krispies Treats and RxBar. Kellanova had been headquartered in a boutique office building at 412 North Wells Street in River North, while Mars already operates a significantly expanded office and research campus on Goose Island.

It’s not yet clear whether the Fulton Market space would consolidate employees from those locations or serve as an additional hub. Mars has been touring large blocks of downtown Chicago office space, according to people familiar with the search, suggesting a broader rethinking of its post-acquisition space.

In a statement to the outlet, a Mars spokesperson declined to confirm the deal, saying the company does not comment on speculation about real estate transactions and is “always evaluating investments and optimizing office space” across its U.S. portfolio. Trammell Crow, the Dallas-based landlord of the building, also declined to comment.

Mars has also eyed space under construction by competing developer Fulton Street Companies at 919 West Fulton Street, which could still be in the running should the Aberdeen Street tower deal fall through.

The Aberdeen Street building is one of two Fulton Market properties branded as Fulton Labs by Trammell Crow, a concept pitched to tenants spanning traditional office, life sciences and research-and-development uses. Tenants already in the building include a research hub backed by Facebook founder Mark Zuckerberg and Priscilla Chan, Illinois Institute of Technology and chemical products firm Mattiq. Battery startup Pure Lithium recently moved its headquarters there from the Boston area.

Completed in 2022, the building was about 51 percent leased before accounting for the Mars deal, according to CoStar.

The potential lease would mark a second major Chicago investment by Mars in just a few years. In 2022, the company announced a roughly $40 million expansion of its Goose Island office and research campus, billed as its largest innovation hub globally. That project opened in early 2024.

— Eric Weilbacher