(To read more on the net lease market, click here.)
CHICAGO-Citigroup Center has lured Cendant's Travel Division Services, which includes Orbitz.com, from 200 S. Wacker Dr. with a 145,000-sf lease. The deal came after about 20 other locations were ruled out, and an original 185,000-sf proposal was whittled down to space on the eighth, ninth and 10th floors of the 1.4-million-sf West Loop office tower at 500 W. Madison St.
"Citigroup Center will allow Orbitz and other companies affiliated with Cendant Travel Distribution Services, to efficiently accommodate 1,200 people over the next three years," says Transwestern Commercial Services executive vice president Tony Karmin, who represented the building's newest tenant in negotiations. Karmin was joined by MB Real Estate vice president of leasing Ann Tomlinson and executive vice president John Murphy.
Although terms were not disclosed, net lease rates at the 40-story Citigroup Center above Metra's Ogilvie Transportation Center start at $16 per sf, also the published rate at 200 S. Wacker Dr., according to Black's Guide. However, more than economics were involved, brokers and the new tenant say.
Cendant's Travel Division Services occupies seven, noncontiguous floors at 200 S. Wacker Dr., with space further separated by two banks of elevators. The group, which also includes CheapTickets.com and Lodging.com, has doubled its West Loop work force to 800. "In today's competitive real estate market, we could have relocated anywhere and we considered numerous alternatives; but Chicago is our home," says Global Online Consumer Travel chief executive officer Mitch Truwit. "It was instantly apparent, however, that Citigroup Center offered the most efficient office space, as well as high-quality amenities and conveniences that directly benefit our people and our bottom line."
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