Two law firms, Latham & Watkins and Swanson, Martin & Bell are adjusting their lease agreements at the AMA Plaza in downtown Chicago as the building suffers through an ongoing foreclosure lawsuit and is set to be sold.
Latham & Watkins aren’t just expanding their square footage, they’re extending the lease out seven years as well. The move puts the firm at upwards of 194,000 square feet in the building after a 35,274-square-foot addition, according to Crain’s. Swanson, Martin & Bell are extending 12 years, but downsizing the space from 91,000 square feet to 56,760. The leasing shift made Latham & Watkins the second-largest tenant in the building.
The pair of recommitments are a good sign for a building that’s been in distress since a $372 million foreclosure complaint was filed in 2024. Office occupancy rates in downtown Chicago are showing signs of recovering to prepandemic norms, but just slightly. Premium office space, like the AMA Plaza at 330 North Wabash Avenue, has remained steady as high-profile tenants look to upgrade employee experience. Despite the murky future of the building, it was 83 percent leased as recently as March, according to the outlet. Downtown office buildings, on average, have a 72 percent occupancy rating.
Despite the successes, a new owner will face an immediate challenge: keeping association management firm Smithbucklin around. Smithbucklin, who occupies 106,000 square feet, has a lease that’s set to expire next year. They’ve been in discussions regarding a new lease with the Aon Center, according to the outlet, who cited sources with knowledge of the negotiations.
The shuffle and challenge come as the building is being prepared for a sale. Northbrook-based Hilco Global, the court-appointed receiver on the building, hired JLL to find someone to buy the building, resolving the $372 million foreclosure complaint filed in 2024. The previous owners, a venture of Beacon Capital Partners, paid $468 million in 2016 to acquire the building.
— Hunter Cooke
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