National Register of Historic Places.
CHICAGO-Another Internet-based firm has decided to make its home within Chicago’s Loop. GrubHub, an online and mobile food ordering service, has agreed to a five-year lease for the top three floors of the historic Burnham Center.
The company, founded in 2004, is tripling its current space. About 250 employees occupy about 19,000 square feet at 2211 N. Elston Ave. in the city’s Bucktown neighborhood, and they will move to 59,463 square feet at 111 W. Washington St.
A spokeswoman for the firm tells GlobeSt.com that the takeover of New York City-based Dotmenu in September, helped in part by the raise of $84 million in venture capital, really has pushed the growth of the firm to the detriment of work space. “We knew we had to move when we had to start using conference rooms as offices,” she says. “The Burnham Center really fits all of our needs.”
Allison Olszta with CBRE represented Norfolk, VA-based Harbor Group International LLC, the owner of the 580,000-square-foot building, in the deal. Geoff Euston with US Equities Realty represented the tenant.
Harbor purchased the 98-year-old building, designed by famed Chicago architect Daniel Burnham, in early 2007 for $79.5 million. The 22-story building was 87% leased as of the fourth quarter. Other tenants include Cook County and Flashpoint Academy, though Cannon Design is vacating 72,000 square feet. Cannon took over longtime tenant OWP/P Inc. in 2009.
Harbor owns three office buildings in Chicago, where large space availability has started to shrink. Jim Vallos, asset manager for the building for Harbor, tells GlobeSt.com that he’s seen the large-space market tighten dramatically in the past three months. “There’s only a handful of spaces available in that size range and quality,” he says. “Part of it has been that a lot of companies are moving from the suburbs and into the downtown.”