CHICAGO—More than fifty years ago, the Prudential Building wasthe tallest in Chicago, but in the intervening years it wasovershadowed by more modern towers on N. Michigan Ave. and in theCentral Loop. But the opening of Millennium Parkhas once more made its East Loop neighborhood, long the most anemicoffice submarket in the CBD, a destination for growing companies,and the Prudential Building, now called One Prudential Plaza, hasbeen taking advantage of the opportunity.

|

The Telos Group LLC, for example, has justsigned Cision to a long-term lease for49,464-square-feet in the 41-story building. Cision, a provider ofpublic relations software and services, will leave a S. MichiganAve. space and occupy the entire seventh floor. Jesse VanDyke, executive vice president of JLL,represented Cision in the transaction. MattPistorio and Bill Truszkowski, bothsenior vice presidents of Telos, represented the building'sowners.

|

“They were looking for a large floor plate where they could getall of their employees on one floor,” Pistorio tells GlobeSt.com.Furthermore, Cision officials were attracted to “the whole newlifestyle of the East Loop.” Since the park opened, theneighborhood has become noted for its lively streets, restaurantsand bars, an atmosphere tailor-made for the millennial employeesthat Cision and other similar firms want to hire in the comingyears.

|

“A lot of the renovations we have done at Prudential Plaza havebeen designed to appeal to progressive tenants, such as media andcreative companies,” Pistorio adds. The building's ownership, Berkley Properties and 601W Companies,have committed nearly $85 million to improvements,including renovations of the lobby and plaza areas as well as newand upgraded amenities.

|

“Many of the tenants moving into this building are also usingmore open, collaborative office designs,” Pistorio says, andtypically that also means shrinking the space assigned toindividual employees. “And as their workspace gets smaller, theyneed somewhere else to go.” To fulfill that need, Telos has addedother amenities, all set to open by December, including a13,000-square-foot rooftop deck with a fire pit overlooking thepark, a 12,000-square-foot fitness center and 7,000-square-footclubhouse. “We're trying to create a neighborhood in thebuilding.”

|

“We are poised for growth as we finalize the combining of Cisionand Vocus into one company, and selecting our newglobal headquarters in Chicago positions us with talent andcustomer base access to fuel that growth,” says PeterGranat, chief executive officer of Cision and Vocus.“Selecting Prudential Plaza provides us a world-class location fromwhich to achieve our vision of being the marque PR technology firmin the world.”

|

And Cision is the just the latest company to relocate or renewat Prudential Plaza since renovations began in 2013. Telos hascompleted nearly 230,000-square-feet of transactions and has anadditional 155,000-square-feet under negotiation.

|

The building's appeal can be seen in the rental rates Telos hassecured. The average lease, Pistorio says, is between $35 and $36gross. “So we're getting much higher rents than other buildings inthe East Loop,” and, once prospective tenants see the amenities andtour the neighborhood, “we don't need to go out and giveabove-market concessions. All of these tech companies in RiverNorth that are outgrowing their loft buildings are starting to seethe East Loop as the best alternative. And this building is agame-changer.”

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

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

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.