Following Richmond, VA-based McGuireWoods LLP's announcement that it is doubling its space at 77 W. Wacker Dr. to 133,575 sf, Jones Day has extended its deal for 138,764 sf into 2019.
While terms were not disclosed, gross lease rates at the building start at $18 per sf. At that rate, the Jones Day deal could be worth as much as $37 million. The average lease rate at the building is $30.10 per sf, according to the REIT's most recent supplemental report.
Jones Day is the third-largest tenant at the 945,000-sf 77 W. Wacker Dr., overshadowed only by RR Donnelly & Sons (241,569 sf), Wachovia Securities (197,384 sf). The deal keeps occupancy in the 92% neighborhood.
"Jones Day considered all options, including anchoring development alternatives, relocating to existing space, and pursuing creative renovation alternatives," says Jones Lang LaSalle managing director Melissa Copley, who represented the law firm along with senior vice president Steve Steinmeyer. "Ultimately, Jones Day decided to remain at 77 West Wacker due to the favorable terms they and we were able to negotiate."
Steve Baron handled negotiations for Prime Group Realty Trust.
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