Heitman Signs 100 KSF Lease Extension at Chicago Tower
The tenant, a financial services firm, will also downsize its footprint at the property.
Heitman has landed a 10-year lease extension at its office tower in Chicago’s River North area. Financial services firm Mesirow will continue to occupy more than 100,000 square feet at 353 N. Clark St. through 2036. Cushman & Wakefield represented the tenant.
The transaction marks a downsizing from Mesirow’s current footprint of 165,000 square feet, according to Crain’s Chicago Business. The firm co-developed the tower and has been anchoring it since its completion in 2009. Heitman purchased the Class A asset for $715 million in 2014.
The high-rise totals 1.2 million square feet across 46 stories. The LEED Platinum-certified building features 29,000-square-foot floorplates and a host of amenities including on-site dining options, a health club, a conference center and bike lockers.
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The property’s largest tenant, law firm Jenner & Block, also downsized its lease from 416,000 to 225,000 square feet following a legal dispute over unpaid rents. Alliant, The Mather Group, RWE, Insight Global, WHI Real Estate Partners, RCP Advisors, Blue Vista, Bickley, Delta Capital Partners and Ventas, among others, are also on the roster.
Downtown Chicago is approximately 1 mile from the office tower. Multiple subway stations are within walking distance of the property, providing transportation access throughout the area.
Cushman & Wakefield Vice Chairmen Ari Klein and Scott Shelbourne negotiated the leasing transaction on behalf of Mesirow.
Chicago office space lags
Among the leading national office markets, Chicago’s average asking rent of $27.73 per square foot was one of the lowest as of November, according to a recent CommercialEdge report. The market’s vacancy rate clocked in at 18.3 percent, down 110 basis points over the year.
In one of last year’s more prominent deals, Molson Coors Beverage Co. signed a 83,848-square-foot lease at a 1.5 million-square-foot Class A office building in Chicago’s CBD. BMO Harris Bank anchors the property.
With prices on a downward trend and a significant development pipeline underway, the area is giving off some mixed signals. Still, transaction and leasing activity continues to take place.
Earlier this month, AmTrust Realty secured two lease renewals at its office tower in Chicago’s Central Loop. A law firm and a non-profit organization will continue to occupy space totaling 20,000 square feet.
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