CHICAGO-The government is adding more offices to the Congress Center building here at 525 W. Van Buren St. The General Services Administration is leasing 43,817 square feet, making the GSA’s total usage at the building about 185,355 square feet.
Robert Assoian, SVP of asset management for owner Grubb & Ellis Realty Advisors, says the agencies such as the IRS, ATF and Secret Service probably like the building because of nearby parking. “There’s about 5,000 spaces within a block of the building,” he says. “A lot of these guys, such as the Secret Service, have government-provided cars.”
The GSA renewed about 114,000 square feet and added another 28,000 square feet in October 2009 at the building. With this new lease, the property is 93% occupied. Other tenants in the 520,000-square-foot office structure include Amtrak, Azko Nobel and North American Insurance. Amenities at the building include a two-story lobby, 24-hour monitored security and a heated underground parking garage.
Assoian did not reveal the lease rate. A company Web site listing shows asking rents at $17-$23 per square foot. He says the downtown Chicago office market has been very weak.
“It’s been as rougher than I’ve ever seen,” he tells GlobeSt.com. “The government is one of the only growing firms in the downtown. It’s tough to do new leasing when there’s negative absorption and high vacancy risk. We’re happy to get this up to 94%.”
The 16-story building was on the market in 2008. A $130 million offer by Boston-based Franklin Street Properties Corp. fell through.
Mark Parrish, SVP with Grubb & Ellis, represented his firm in this lease. The GSA was self-represented.
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