X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ROSEMONT, IL-Central States Funds will downsize its space from 211,000 to 170,000 square feet at 9377 W. Higgins at Riverway Central. The pension, health and welfare funds administrator signed a nine-year lease renewal for a portion of the space it has occupied for two decades.

Building owner Duke Realty Corp. was represented in-house by Ryan O’Leary, while Central was represented by John Musgjerd, managing director with Jones Lang LaSalle.

“It happens to tenants when you’re at one place for a long time, and there’s a chance to look at space and get more efficient with your use,” Musgjerd tells GlobeSt.com. The company bases its headquarters out of the 280,000-square-foot Riverway II, which is about 90% occupied, he says. Central’s office is within the three-building Riverway complex, which offers about 860,000 square feet overall.

The complex is in the O’Hare submarket, where asking lease rates are around $24 per square foot and average occupancy rates are below 79%, according to a recent Cushman & Wakefield market report.

“All of the submarkets are showing between 18% and 22% vacancy, so it’s a good time to be a tenant and a tough time to be a landlord,” Musgjerd says. “We looked around the market and at the end of the day, this was the right place for Central to be in terms of location and getting a good economic deal.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.