CHICAGO—Burrell Communications has just completed a long-term renewal of its lease for 34,508-square-feet at 233 N. Michigan Ave., part of the 2.1 million-square-foot Illinois Center office complex.
Monica Moore, Nikki Kern and John Beason of Jones Lang LaSalle completed the transaction on behalf of the building's owner, CommonWealth REIT. Joseph Learner and Terry Mostrom of Studley represented Burrell, a marketing and advertising firm.
Newton, MA-based Reit Management & Research LLC, Real Estate Services manages the building. As reported in GlobeSt.com, JLL was hired on as the leasing agent last March.
Last year, CWH began making major renovations, all designed by the Chicago architectural firm Goettsch Partners, to Illinois Center's plaza, retail concourse and the main entrance. CWH will soon open a new outdoor plaza with complimentary tenant Wi-Fi access and redesigned seating areas. In addition, earlier this year CWH began modernizing the retail concourse between the two buildings.
The building of nearby Millennium Park and the influx of condo dwellers has increased the appeal and livability of this East Loop neighborhood. However, it still struggles in comparison with other parts of the CBD including the Central Loop and West Loop. Although the vacancy rate ticked down to 15.3% by the end of the year, down from 15.8% in 2012, "leasing activity was virtually non-existent during the fourth quarter with the largest reported transaction being Senior Lifestyle Corporations renewal of its 26,500-square-foot lease at 111 E. Wacker Drive," according to the most recent market report from Colliers.
"Overall the submarket has struggled to find the stabilization that has been experienced across the majority of submarkets in the CBD," Colliers notes. "Despite the aforementioned gains experienced relative to two years ago, the submarket still has significant ground to make-up due to several anchor tenant deflections to other submarkets over the past four years."
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
