CHICAGO—Tenants are scrambling to occupy space in River North, but leasing activity slowed down in the Central Loop over the first quarter, with the submarket posting negative 10,859-square-feet of demand, according to a recent report from Colliers, and that follows just 48,075-square-feet of positive absorption in all of 2013.

But Tabet DiVito & Rothstein LLC, a Chicago litigation firm, brought a bit of good news by recently signing a long-term lease extension for its approximately 25,000-square-foot office in the historic Rookery Building, designed by architectural partners Burnham and Root and located in the Central Loop at 209 S. LaSalle. Commercial real estate services firm Studley represented the firm in the transaction.

According to executive vice president and co-branch manager Joe Learner, Tabet DiVito & Rothstein wanted Studley to help maintain its presence in the high-profile building not only because of its prestige, but also for its close proximity to the courts and public transportation.

“LaSalle remains the historical heart of the city and a desirable location, particularly for law firms,” says Learner. “The Rookery is very much focused on preserving its tenant mix, which enabled us to renegotiate the firm's lease terms, allowing for additional flexibility and concessions. The landlord fully met Tabet DiVito & Rothstein's needs.”

Experts believe the submarket could post better results in 2014. “As technology firms continue to absorb the little excess space that exists in the River North market,” Colliers says, “some of those firms may find the need turn to space options in the Central Loop. This would in turn help to offset space reductions resulting from the right-sizing trend occurring within the more traditional Central Loop user base.”