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Chicago - CBD

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Leasing Activity

Large transactions completed in the last 90 days: 

  • The American Hospital Association has signed a lease for 115,000 s.f. at 155 North Wacker.  Once complete, they will occupy several low-rise floors at the new tower.

  • United Airlines will be expanding their occupancy at 77 West Wacker with an additional 108,000 s.f. of space. Their total square footage will jump to 240,000 s.f.

  • Argosy University is planning a move to the East Loop with a new 71,000 s.f. lease at Michigan Plaza. The move will allow a consolidation of Central Loop and River North spaces.

  • Merrill Corporation has nearly doubled its space to 42,000 s.f. in an expansion and extension at 311 South Wacker.

  • In a move from Franklin Center, Harris Alternatives has agreed to lease 41,000 s.f. on two floors at 300 North LaSalle. 

  • The U.S. Census Bureau signed for 33,000 s.f. at 500 West Madison.

Several large transactions are in play:

  • William Blair has signed a letter of intent to anchor a new development at 201 North Canal Street where they are planning to occupy 325,000 s.f.

  • American Medical Association, currently at 515 North State and 200 North LaSalle, is in lease at Union Station for 275,000-300,000 s.f.

  • Marsh, Inc., currently at 500 West Monroe and 30 South Wacker has narrowed their search for roughly 300,000 s.f. to 155 North Wacker, Franklin Center or the proposed Post Office project.

  • BP has announced plans to relocate to the CBD market from the East/West Corridor. They are considering proposed and existing space options for roughly 300,000 s.f.

  • Baker & McKenzie, currently at Prudential Plaza (130 East Randolph), is in the market with a 2012 requirement for 260,000 s.f.

  • Ernst & Young, currently at the Sears Tower, has a 2012 requirement of 250,000 s.f.

  • KPMG, currently at 303 East Wacker, has a 2012 requirement of 228,000 s.f.

  • Kaplan, currently at 550 West Van Buren, remains in the market for 200,000 s.f.

  • In a move from 500 West Madison, Quarles & Brady is set to take approximately 75,000 s.f. at 300 North LaSalle.

Building Sales

Building sales of note:  

  • Behringer Harvard closed on the purchase of a four-building portfolio (440 South LaSalle, 10 South Riverside Plaza, 120 South Riverside Plaza and 200 South Wacker) from Beacon Capital Partners for $850 million ($265/s.f.). 

  • The historic Rookery Building on LaSalle Street (281,325 s.f., Class A) was sold to Metzler from Broadway for $73 million ($259/s.f.).

  • Inland Steel Building (228,459 s.f., Class B), owned by Gehry-D’Ancona-Camins was purchased by Capital Properties for $56 million ($245/s.f.).

Pending Sales include:

  • 401 North Michigan (737,308 s.f., Class A) is under contract to be sold by Zeller/TIAA to Broadway for $200 million ($271/s.f.).

  • 200 West Monroe (517,650 s.f., Class B) is under contract to be sold by The John Buck Company to GE Asset Management for roughly $113 million ($215/s.f.).

  • Joseph Chetrit is under contract to sell three assets to Apollo:

    • One North Dearborn (884,104 s.f., Class B) for $119.3 million ($135/s.f.). 

    • One North LaSalle (482,602 s.f., Class B) for $65.7 million ($135/s.f.).

    • 360 North Michigan (260,823 s.f., Class B) for $35.2 million ($135/s.f.).

  • 55 East Jackson (440,000 s.f., Class B) is under contract to be sold by Marc Realty for $52.8 million ($120/s.f.).

Properties currently being marketed for sale include: 

  • Aon Center (2,776,000 s.f., Class A), owned by Piedmont is seeking a joint venture.

  • Prudential Plaza (2,196,000 s.f., Class A/B), owned by BentleyForbes.

  • UBS Tower at 1 North Wacker (1,340,000 s.f., Class A), owned by Deutsche Bank Group.

  • 35 West Wacker (1,062,000 s.f., Class A) owned by Piedmont is seeking a joint venture.

  • 233 North Michigan (980,000 s.f., Class A) / 111 East Wacker (1,003,000 s.f., Class A) owned by Parkway Properties is seeking a joint venture.

Construction Activity

  • The CBD market has six buildings currently under way for a total of 5.1 million s.f. scheduled for delivery from early 2008 through 2010.

  • The first CBD delivery in nearly two years will be the office portion of the Block 37 project.  Expected in early 2008, the 400,000 s.f. building will come to market 80  percent leased by CBS Broadcasting and Morningstar, Inc.

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