Hedge Fund Qube Plants Flag at Chicago BMO Tower

Hedge fund Qube Research & Technologies is the latest firm betting on Chicago’s top-tier office market, signing a sizable lease at one of downtown’s newest towers as it grows its U.S. presence.

The London-based firm inked a lease for just over 29,000 square feet on the 39th floor of BMO Tower at 320 South Canal Street, according to sources familiar with the transaction, first reported by Crain’s. The outpost will mark Qube’s third U.S. office, adding to its New York and Houston offices announced last summer.

Qube’s lease is the latest notable lease at the tower, owned by a joint venture between Riverside Investment & Development and Convexity Properties. The developers completed the 52-story, 1.5 million-square-foot building during the pandemic.

With the Qube deal, the property is now 84 percent leased, according to a statement from the owners, who confirmed a 39th-floor lease with an unnamed global asset manager.

The move lands as a modest but meaningful win for a downtown office market still grappling with elevated vacancy and sluggish leasing tied to remote work, according to the publication. New entrants like Qube are increasingly critical to backfilling space shed by companies shrinking their offices, a dynamic that has weighed on the Loop’s recovery and broader office demand.

The building has attracted a roster of blue-chip tenants, including BMO as its anchor, along with law firms Kilpatrick Townsend & Stockton, Faegre Drinker Biddle & Reath, Chapman & Cutler and Skadden Arps Slate Meagher & Flom. Qube’s arrival further tightens availability in the city’s “trophy” office segment, where demand has held up far better than in older commodity buildings.

That bifurcation continues to define Chicago’s office market, because even as overall vacancy hovers near record highs, the best buildings are seeing limited supply and are commanding premium rents, driven by companies prioritizing high-quality space to lure workers back.

Qube, spun out of Credit Suisse in 2018, manages tens of billions of dollars in assets and employs more than 1,400 people globally, according to the outlet. Its Chicago hiring plans remain unclear, and the firm has not commented on the expansion.

— Eric Weilbacher