CHICAGO—As reported yesterday in GlobeSt.com,Metropolitan Chicago Healthcare Council hasdecided to stay in 222 S. Riverside Plaza, its homefor several decades. The group just renewed its long-term lease ofnearly 30,000-square-feet on the 19th floor in the West Loop officetower, and Tiffany Winne, senior managing directorof Savills Studley, which helped MCHC negotiatethe new lease, tells GlobeSt.com that “we surveyed the entiremarket as part of the process,” but that survey just “reinforcedfor them the advantages of staying in 222 S. Riverside.”

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Unlike many downtown office buildings, for example, the35-story, 1.2-million-square-foot tower, which sits along theriver, is separated from its neighbors, allowing light to flow inon all sides. Tenants have “uncompromised views, even on the lowerfloors” and with Union Station next door “you'restacked up on top of a major train station.” Furthermore, the hugefloor plates, which average about 35,000-square-feet, ensured thatMCHC, a membership and service organization dedicated to improvingthe delivery of health care services in the Chicago area, got tostay on one floor.

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Savills Studley also recently represented LincolnInternational, a global mid-market investment bank, in itsrenewal of a long-term lease nearby at the 42-storyCitigroup Center, 500 West Madison St. Like MCHC,the bank looked at all the local options, but decided to stick withits present space. “They are completely different organizations,but they had the same realization.” 500 W. Madison also sits atop atrain station, and the tight West Loop market will have fewalternatives until 2017.

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Many landlords in the submarket may be considering thepossibility that their tenants could leave once those towers openfor business, Winne adds, and seem open to making concessions. Andalthough Winne cannot divulge the details of MCHC's lease due to aconfidentiality agreement, it does include provisions which willallow the organization to either shrink or grow its footprint overthe years. Such provisions are important for groups in health careservices, due to that sector's volatility. “The ownership was veryaggressive in retaining them.”

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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.