CHICAGO—The former Allstate Headquarters Building on the West Side was until recently considered one of the city's most endangered historic structures, but its owner the Royal Imperial Group believes it and the surrounding neighborhood have redevelopment potential. The Chicago-based developer has hired Newmark Grubb Knight Frank as the building's exclusive leasing agent and will commence a 14- to 16-month redevelopment when it secures an anchor tenant.

“There are a lot of companies that don't want the congestion or anonymity of being in the central business district,” NGKF's Ted Prillaman, senior managing director, tells GlobeSt.com. And occupying a significant portion of the 11-story, 300,000 square-foot building at 3245 W. Arthington St., now called Westgate Tower, will allow a company to forge a unique identity but retain the prestige of a Chicago address, he adds.

“Once the renovation is done, we will be able to deliver what will essentially be a new space in a new building at a very low cost,” Prillaman says. Premium space in the CBD typically rents for $40 to $50 per square foot gross, but for the initial anchor tenant, NGKF is shooting for about $29 to $30.