Stripe set to Double Office Space in River North High-Rise

San Francisco-based online payments solutions company Stripe is set to expand their presence in Chicago’s River North by upwards of 130,000 square feet.

The whole of the new lease is for a little bit over 222,000 square feet at 350 North Orleans Street, according to Crain’s, who cited sources familiar with the property. The new lease more than doubles the old lease, which spans 89,000 square feet. Stripe is set to occupy the new space in phases as it completes a run of new hires, with around 80 new job listings for the Chicago area posted, according to the outlet. The precise length of the new lease was not reported.

Stripe’s move bolsters 350 North Orleans Street after previous owners Blackstone defaulted on its $310 million loan on the property. Santa Monica, California-based Glendon Capital Management, along with Max Meyers and Jason Trailov, are reportedly closing in on a purchase agreement for the property.

Last week, the 13-story, 1.2 million-square-foot total building sat just a smidge under 60 percent occupied, according to the publication. Eastdil Secured brokers are marketing the building for sale and say they’ve received bids in the $90 to $100 million range.

Fully remote and hybrid work has fundamentally changed office building markets. The outlet reported that the eventual purchase of 350 North Orleans Street will be for substantially less than the $378 million Blackstone paid in 2015. Multiple job listings posted on Stripe’s website indicate that in-office positions are expected to spend 50 percent of a given month in the local office, or with customers. The expectation differs by team and hiring location.

Nearby, 500 West Monroe Street sold to a joint venture of Chicago-based Glenstar and Patrick Halloran for a 76 percent discount from the previous sale price. 255 West Wacker Drive faces a similar drop in pricing as well. Across downtown Chicago, the path forward for developers appears to be heavily renovating their office space to attract high-profile tenants, or adding residential or retail space.

— Hunter Cooke