The insurance company ran its Encompass business out of thefifth, sixth and seventh floors of the building, one of three WestLoop assets Trizec Properties owns. It owns another 685,000-sfbuilding at 10 S. Riverside Plaza, where occupancy is 87.6%, aswell as 550 W. Washington St. With the Allstate space representingabout 5% of the REIT's 2.4-million-sf Chicago portfolio, occupancyat the four properties here is 89.3%, according to the company'sfirst-quarter earnings report.

"Chicago continues to struggle with the perfect storm oflackluster job growth, the negative impact from recent mergers,high level of construction deliveries and space vacated by tenantsmoving to those new developments," says president and chiefexecutive officer Timothy Callahan.

Meanwhile, Trizec Properties is decelerating its efforts to exitnon-core markets in favor of holding out for higher prices. Oneasset held for sale, a 770,000-sf building in Tulsa, OK, is back onthe market after the company signed new tenants to leases. "We wantto make sure they're sold for the right value, and not just to sellto say we've sold in this environment," Callahan explains.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.