CHICAGO—The independent research organization NORC at the University of Chicago has just signed an extension on its existing 88,000-square-feet at 55 E. Monroe in the East Loop. In addition, the firm has also agreed to a 30,000-square-foot expansion and brought its total footprint in the office tower up to 118,000-square-feet. Although several high profile tenants have recently left the surrounding neighborhood, leasing at this tower remains robust, and the owners' strategy could show other landlords a way to bolster the submarket's long-term health.
GlenStar Properties LLC and its partner Walton Street Capital began redeveloping 55 E. Monroe in 2005. The partners did not believe the East Loop was living up to its potential as either a residential neighborhood or an office submarket. They began upgrading the offices and converted the top nine floors of the 1.6-million-square-foot property into luxury condominiums. As reported in GlobeSt.com, GlenStar completed the conversions in 2013 and sold the last of the 215 condominiums by late spring.
And on the office side, in the last 12 months GlenStar has convinced existing and new tenants to occupy an additional 120,000-square-feet. Perhaps most importantly, Punchkick Interactive, a mobile marketing expert and just the type of tenant most landlords would love to attract, recently decided to move from the downtown's high-tech center in River North into 23,401-square-feet in 55 E. Monroe.
“As evidenced by the Punchkick Interactive lease transaction completed during the second quarter, East Loop landlords could end up benefitting if they are able to position their assets in a way that is attractive to this unique user base,” according to Colliers' most recent report on Chicago's office market.
“All of the leasing activity we have seen in 2014 is further proof of the East Loop's resurgence,” said GlenStar managing director Christian Domin. “What was once a '9 to 5' environment is today a highly sought after office destination for tenants who want direct access to the city's cultural institutions and parks, as well as a diverse and energetic, 24/7 neighborhood.”
Cushman & Wakefield's Jeff Lindenmeyer and Chris O'Leary represented NORC in the transaction. Ownership was represented by Domin.
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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.
