Transwestern Moving to Top Floors of Wacker Drive Tower

Transwestern is moving its Chicago office to the top of a downtown office tower that has a new Sterling Bay leasing team.

The Houston-based real estate services firm signed a lease for roughly 35,000 square feet spanning the top three floors of the 30-story building at 123 North Wacker Drive, according to a company announcement first reported by Crain’s. Transwestern plans to relocate its Chicago flagship to the penthouse space this fall, consolidating from a space it currently occupies across the buildings at 200 West Madison Street and 181 West Madison Street, its longtime Loop outposts.

The move puts Transwestern in familiar company. Rival CBRE recently decamped to new offices at the building at 300 North LaSalle Street, while Newmark is preparing to relocate its Chicago team to Salesforce Tower Chicago.

For Transwestern, the deal is about more than an address upgrade. Executive Managing Director and Greater Chicago Market Leader Blake Johnson said the new office signals the next phase of the company’s growth in Chicago.

The lease carries added weight for the landlord. The 595,000-square-foot tower at 123 North Wacker is owned by a venture led by Los Angeles-based Mesa West Capital, which took control of the property in late 2024 after Chicago-based LaSalle Investment Management struggled under a $153 million debt package originated in 2021. With office values sagging amid weak demand and higher interest rates, LaSalle had little incentive to pour fresh capital into leasing as the loan matured, according to the outlet.

Mesa West, which provided a $37 million mezzanine loan as part of that capital stack, stepped in with plans to stabilize and lease up the building. A Mesa West venture was later listed as the borrower on a $115 million senior loan from Wells Fargo, property records show. The firm brought in Sterling Bay brokers to oversee leasing at the tower, which was about 65 percent leased before the Transwestern deal, according to CoStar.

Sterling Bay’s Austin Lusson framed the lease as evidence that top-tier buildings are regaining momentum downtown. Transwestern’s own leasing team, led by Executive Vice President Eric Myers, will also help market the property.

The move leaves behind a looming vacancy at the building at 200 West Madison, where Transwestern’s lease expires at year-end. The 45-story tower, owned by BentallGreenOak, is about 86 percent leased — well above the downtown average — but will soon be hunting for a sizable backfill, as one of its longest-tenured tenants heads west to Wacker Drive.

— Eric Weilbacher