CHICAGO—Avison Young recently completed four lease transactions totaling about 42,000-square-feet of space at One South Wacker Dr., another step in the repositioning of the 1.2 million-square-foot building. Harbor Group International LLC bought the property in 2012, invested $15 million in an extensive renovation and boosted its occupancy from 80% to about 89%.
The new leases include an almost full-floor lease for Avison Young's Chicago region. The company, which entered the regional market in 2009, relocated from about 12,000-square-feet at 120 N. LaSalle St. and has taken 22,000-square-feet on the 30th floor of the 40-story building. Over the past five-and-a-half years, Avison Young has grown from 11 to more than 60 offices in Canada, the US and Europe.
“The work that Harbor Group has done in the comprehensive repositioning of the building demonstrates its commitment to Chicago and, more importantly, the tenants of the building,” says Michael Curran of Avison Young. Curran, Brad Despot and Eric Myers, all Avison Young principals, and vice president Annie Welsch in the Chicago office, handle all leasing for the building and represented Harbor Group in the transactions.
The renovations created a more open entrance to the building, and also included a redesign of the exterior plaza, a rebuilt lobby and adjustments that let in more natural light. And the building's mezzanine level and second floor were extensively renovated to add a 30,000-square-foot co-working lounge and conference center managed by Serendipity Labs.
The new Serendipity space illustrates the type of amenities class A landlords may have to start including to remain competitive. John Arenas, chief executive officer of Serendipity, told GlobeSt.com that One South Wacker is the first class A Chicago office building to incorporate a full-service shared workspace and conference center for its tenants and the public. “Having that in the building can be a real asset. The meta trend is that companies of all sizes are changing, and instead of one desk per person, most also want to have an adjunct space.”
The Avison Young leasing team also completed the following three transactions:
• Chicago Fundamental Investment Partners, a financial services firm, leased 6,800-square-feet. The firm moved to the building from a neighboring Wacker Dr. property.
• Stout Risius Ross, a law firm that had occupied a full floor in the building has expanded by 7,300-square-feet for a total of 32,000-square-feet.
• Kutak Rock LLP, based in Omaha, NE, renewed its lease for 5,800-square-feet on the 20th floor. The law firm represents governmental entities in the area as well as many major national and regional banks and investment banking firms.
“I have been involved with the property for more than 10 years and am impressed by the transformation brought about by Harbor Group,” Curran adds. “Their investment to transform the lobby and add important building amenities has had an immediate impact on the rent growth, leasing velocity, and, most importantly, the overall tenant experience.”
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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.
