224 South Michigan Ave.

CHICAGO—Global architectural firm Skidmore, Owings & Merrill, LLP, has signed what it terms is a “long-term lease restructuring and renewal” for its Chicago office at the Railway Exchange Building in the East Loop.

The firm will occupy 55,988 square feet at 224 South Michigan Ave. SOM has been a tenant in the building for nearly 28 years and will continue to occupy floors 5, 9 and 10 of the 17-story, 378,600-square-foot mixed-use office tower.

The new agreement allows the firm to fully renovate its remaining space with an enhanced layout and modern design. SOM will utilize its current footprint and additional swing space to accommodate its 400 employees during the buildout, the company states.

Savills vice chairmen Robert Sevim, Eric Feinberg and Joe Learner represented the company in negotiations with the building owner. The Railway Exchange Building, built in 1904, is owned by the University of Notre Dame's endowment fund and is listed on the National Register of Historic Places.

“Staying in our current location and optimizing our workplace was the best outcome for us,” says Jonathan Stein, AIA, managing partner, SOM. “The Railway Exchange Building has been our home and has supported our operational needs for many years. The solution structured by Savills secured an improvement allowance that made the vision for our space a reality. Now we can build a physical environment that promotes culture, collaboration and innovation, and we couldn't be more pleased.”

The news of the firm's lease renewal came as the City of Chicago announced on Monday that SOM was selected by City of Chicago to lead the design of two new satellite concourses at O'Hare International Airport—an integral part of the airport's $8.5-billion Terminal Area Plan expansion.

Following a competitive process, SOM was selected to design Satellite Concourse 1 and Satellite Concourse 2, which will be built west of the main terminal core. The city will now enter into contract negotiations with SOM. Upon the award, SOM will begin working with the City of Chicago and O'Hare 21 stakeholders on the modernization and expansion of O'Hare.

“With more than 80 million passengers relying on O'Hare every year, Chicago and our airline partners are making necessary investments today to keep O'Hare #1 in the nation for connectivity and a competitive global hub for the future,” Chicago Mayor Lori E. Lightfoot said. “As we build new state-of-the-art facilities, my administration will ensure residents from communities throughout our city can benefit from the thousands of jobs and opportunities created as we move O'Hare into the 21st century.”

With approximately 1.2 million new square feet of total building space, Satellites 1 and 2 will feature concourses that are double the width of those currently in use at O'Hare. All told, the Global Terminal and Concourse and satellites will provide 70 percent more passenger space and a 75-percent increase of commercial space at O'Hare. This means more passenger amenities, doubled airline lounge space, and the potential for more than 50 unique new dining and retail brands to have a presence at O'Hare.

The satellite concourses are valued at $1.4 billion and are currently slated to break ground in 2022. Additional gate capacity will enable O'Hare to keep up with projected travel growth and allow dual hub partners, United and American Airlines, and their alliance partners to grow at O'Hare, resulting in greater connectivity and competitive pricing for travelers, city officials stated.

The joint venture of Studio Gang, SCB, Corgan, Milhouse, and STLArchitects received the highest overall score and entered into a contract with the city in May to design the Global Concourse and Global Terminal, and to set the tone and palette for the satellite concourses. In accordance with the RFP, SOM—the second-highest scoring bid—was selected to lead the design of Satellite 1 and Satellite 2. Should the City of Chicago and SOM fail to enter into a contract, the third-highest scoring bid will be selected.