CHICAGO-True Partners Consulting, a tax and business advisory firm, has renewed a lease early to remove some of its space. The company has dropped about a quarter of its space and will now be at the 651,000-square-foot West Loop tower until 2021.
The building is about 91% occupied, says Andrew Davidson with MB Real Estate. He says the rates are around $17 to $21 per square foot net for this area. Davidson was joined by Kyle Robbins and David Burkards in representing the tenant on the lease, and Steve Smith and Monica Moore with Jones Lang LaSalle represented landlord JP Morgan.
The company’s lease wasn’t up until 2015, Davidson says. However, he says the extension is representative of today’s marketplace. “We’re seeing a lot of leasing activity. The economy seems to be coming back, and people are starting to make decisions, stronger than what would have been anticipated in light of high unemployment.”
He tells GlobeSt.com that all Class A space is doing well, but particular attention is going to be soon on buildings that have more than 100,000 square feet available for one tenant. “There’s a few large tenants out there looking. You’ve got Wells Fargo looking to consolidate space from its Wachovia acquisition, as well as Marsh Inc., General Electric and McKinsey & Co. After they find space this year, if you’re looking for a large block of space, there’s not going to be many alternatives available.”
In fact, new development may not be as far off as people originally thought, Davidson says. “We probably will see a building in the next two-to-three years, and it will probably only be around 400,000 square feet. But if you told people a year ago that development could even be on the horizon, they would have laughed at you,” he says.
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