CHICAGO—2017 will bring a lot of changes to the CBD's office market. Dozens of tenants will move into the West Loop's new trophy office towers, and open up large amounts of space across the downtown. Therefore, although rental rates seem to be on the upswing, the big reshuffle also presents opportunities for other office users looking for new space.
That was the recent experience of brokers at Savills Studley. They just helped 1WorldSync complete a new lease at 300 S. Riverside Plaza. Beginning in April, the global content exchange network will occupy 22,247 square feet on the entire 14th floor of the class A building.
“We had many choices,” Lisa Davidson, executive managing director, tells GlobeSt.com. A trophy office tower like 444 W. Lake St. may not have been an option, but “the added inventory made the rest of the market more competitive for a tenant like 1WorldSync.”
The firm was already well-pleased with present location in 10 S. Riverside Plaza, and considered spaces in Willis Tower and 440 S. LaSalle, but 300 S. Riverside offered “an attractive package of concessions that paid for a new build-out, including new furniture,” says Davidson.
The aggressive concessions package is not surprising. The 23-story, 1.1 million square foot tower lost its anchor tenant last fall when J.P. Morgan Chase decided to vacate 480,000 square feet as part of a consolidation.
“Whenever you get a big load of new supply like this, there is more than enough to go around,” Davidson adds. “It all trickles down.”
CHICAGO—2017 will bring a lot of changes to the CBD's office market. Dozens of tenants will move into the West Loop's new trophy office towers, and open up large amounts of space across the downtown. Therefore, although rental rates seem to be on the upswing, the big reshuffle also presents opportunities for other office users looking for new space.
That was the recent experience of brokers at Savills Studley. They just helped 1WorldSync complete a new lease at 300 S. Riverside Plaza. Beginning in April, the global content exchange network will occupy 22,247 square feet on the entire 14th floor of the class A building.
“We had many choices,”
The firm was already well-pleased with present location in 10 S. Riverside Plaza, and considered spaces in Willis Tower and 440 S. LaSalle, but 300 S. Riverside offered “an attractive package of concessions that paid for a new build-out, including new furniture,” says Davidson.
The aggressive concessions package is not surprising. The 23-story, 1.1 million square foot tower lost its anchor tenant last fall when
“Whenever you get a big load of new supply like this, there is more than enough to go around,” Davidson adds. “It all trickles down.”
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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.
