Chicago Fulton Marketplace developer Sterling Bay nears lease with Boston Consulting Group



A finalized deal would be a turning point for the grainy hallway that has become fashionable, a move some industry experts are comparing to Google’s move to the neighborhood, the event that sparked Fulton Market’s transformation into a corporate destination. While other professional services firms with smaller offices, including Kroll (formerly Duff & Phelps) and Ernst & Young, have rented space in the neighborhood, BCG is said to be by far the largest and most prominent of this. sector to leave a traditional central business district. building for Fulton Market. This could push other dominant white-collar firms to consider a neighborhood better known for tech-driven tenants.

Equally noteworthy would be Boston Consulting‘s commitment to a site separated from Main Street of Fulton Market by Metra lanes. The company is said to be the first major tenant to rent office space north of the railway line through the neighborhood, indicating that a new corridor of office users could form along the neighborhood’s northern border.

A spokeswoman for Sterling Bay declined to comment and a spokeswoman for Boston Consulting did not comment.

Sources said Boston Consulting is targeting the move to the new Sterling Bay building while considering the possibility of signing a new lease in its current lease, where it has been located since the opening of the $ 1.3million glass tower. square feet in 2009.

His departure would be a blow to tower owner Irvine, based in Newport Beach, Calif., Who recently saw main tenant Kirkland & Ellis announce he would be vacating the building for the new Salesforce tower under construction at a little over a block away.

If Boston Consulting follows Kirkland, Irvine would have a block of over 850,000 square feet of office space to market to new users.

This might be compelling for a massive tenant looking for a large space in a relatively new downtown apartment building, but it is also a tall order as the increase in remote working during the COVID-19 pandemic. reduced the demand for workspace. The vacancy rate in downtown office buildings at the end of the third quarter hit a record 20%, according to data from brokerage firm CBRE.

Boston Consulting’s move would also underline the premium tenants place on brand new buildings designed for the post-COVID world, given that it would vacate a building considered one of the best in the city.

Irvine bought the 60-story building in 2014 for $ 850 million, then the highest price ever paid for an office building in Chicago. A spokesperson for Irvine could not be reached.

Sterling Bay reportedly targeted companies like Boston Consulting when it recently redesigned its plan for 360 N. Green by reducing the size of the floors and adding nine floors to the proposal to make it 26 floors. Professional service companies and law firms tend to avoid building with massive floor plates, opting instead for those with more lines of windows for offices.

Sterling Bay is looking to relaunch its Green Street building after filling another office building at 333 N. Green St. with tenants, including the developer’s head office. Sterling Bay is also under construction on a nearby 200,000 square foot office building at 345 N. Morgan St., about half of which has been pre-let to supply chain management company Havi Group.

CoStar News first reported on Boston Consulting’s advanced talks to lease the Green Street building.


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