ELK GROVE VILLAGE, IL-Embanet is moving its US corporate headquarters from Schaumburg, IL to an 18,600-square-foot office here at 50 Northwest Point. The company, a provider of online learning services, is subleasing most of the fifth floor from Citigroup, which leases the six-story building from Franklin Street Properties Corp.
Terry Mostrom with Studley says that Citigroup vacated the top two floors. Mostrom, who represented the tenant, says his client got very attractive terms to move into a mostly-finished space in the 180,000-square-foot building. “This wasn’t geographically where the tenant wanted, but the physical layout is such that they could just walk into it.”
Patrick Donoghue, CFO for the tenant, agreed. “The space is turn-key with a high-end build-out so we have virtually no out-of-pocket costs,” he said in a statement. The company also has the right of first refusal to lease out the remainder of the fifth floor, about 11,500 square feet.
Embanet’s lease is up at its 11,000 square feet at 1000 Woodfield Rd. in Schaumburg. The new lease takes the company to 2016. The sublease rate was not disclosed. Asking rates at the building were at $24 per square foot when Citigroup signed a 10-year deal in early 2006.
Mostrom tells GlobeSt.com that there were several great options out there, and he’s just not sure that if the bottom has been hit, that there will be any upward movement in leasing. “It’s still far and away a tenant’s market,” he says. “I’ve been a rep in suburban Chicago for 23 years, and I’ve never seen concessions so high. Rental rates are extremely aggressive. It’s hard to imagine, from a tenant perspective, that it could get better than this. Given how poorly the economy seems to be doing, I can’t see it changing anytime soon.”
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