wasn't it someone on this forum that mentioned that 130 had a tenant lined up like 3 months ago but we never knew exactly who it was?.. It seemed that 130 was pretty much a go by all means?... I feel like it has dropped a bit in the confidence scale...just a tad :shrug:

It was mentioned that Sidley was close to signing a deal but they ended up just renewing their lease.

So if these are the two main buildings future "major" tenants are considering, (this and 110 wacker), can we assume that wolf point is going on the back burner until the next cycle?

I don't think we can assume anything. Currently Wolf Point South isn't an option or active proposal.

Because that project is being phased, the next tower they're thinking about is the east building. We don't know the programatic makeup of the south tower at this point..

One thing I've heard re 130 is that Tishman has been quite keen to go spec, but that the current arrangements it has with the lender/lender group it is currently working with are preventing it......

Which Wolf Point? South? That's years off. East is what's next.

I am also planning to build a 700 ft tall skyscraper on spec.

....But alas my arrangement with lenders is also preventing it ;)

^Only 700? My 1,800' spec tower is in its final stages. Only pending loan, location, plans, tenants but I'm confident in it coming to fruition this cycle or next.

Mine would be in the east loop, 1400 ft, 70% affordable housing and designed by Jean Nouvel.

LOL I don't think that's how it works :haha: you guys are a mess

lol.

Yes, yes - mine too.

While I realize how that sounded, I suppose I should expound:

Tishman Speyer has other options here. Strong, Long-term relationships with specific banks and loan officers are important, though Tishman is a very large and experienced outfit. They presumably can take advantage of equity relationships to meaningfully boost total equity contribution and thus meaningfully reduce loan-to-value ratio. They can draw on a large amount of other debt sources that are out there and competing in the market - shop around at other traditional banks outside of the group they're working with, as well as foreign banks, debt funds, non-bank financial firms, etc. They could also launch the project on equity, with an eye toward arranging a loan partway through construction (closer to beginning than end), once they have landed an anchor - which may be easier once prospective anchors see the project physically progressing, and they're thus more confident in it, and the developer. Tishman has the means and the options to pull this off on spec if they really want to (if they don't in fact land a pre-construction anchor in the near-term). Whether they themselves are comfortable with the specific risk profile of that action is another matter. What I've also heard is that the bank/bank group they've been working with is taking into consideration some other spec projects elsewhere that they currently are working on....other prospective debt capital sources may not weight that factor as heavily......

Im Starting to get a bit worried about this one :( ...Felt very confident that this would be able to land a tenant just seems like too much competition may been joining the market now... Just posted article about 110 North wacker tower possibly starting in October

I think 110 N Wacker and BofA just killed the chances of this one getting off the ground in the foreseeable future. I was really hoping to see this K&S design get built.

Never say never, I'm sure there's still a bunch of mega-companies out there looking for a good chunk of a building. Especially one this good looking with alot of space avaiable with a great location.

The site is far too well located to sit vacant for another decade. Something will be built, it's just a question of what. The site is also huge.. they could easily build something - hotel/apartments/condos - on half of the site and still be able to build a 1m+ sqft office tower on the other half. I always thought the current proposal did a rather poor job at maximizing the sites potential. The tower itself only takes up 1/2 the space. The rest is wasted on a podium and some park space.

https://farm5.staticflickr.com/4258/...e70dfe03_b.jpg

Ground-breaking ceremony taking place today :cheers:









Just kidding, it's a film production crew. Maybe someday....

you tingled the hairs on the back of my neck for a second or two. I cant believe they havn't turned it back into a parking lot yet to make some extra money. maybe they still have something in the works.

^ Same here.

This project is very much still being actively marketed to prospective anchor tenants........they are out there....

I agree. The building itself is nice enough, but the use of the space is very poor. I would much rather see the site used in halves, with the Court Place alleyway maintained. I'm surprised the City is willing to let that alley go. Alley's are important spaces and, IMHO, their use should be enhanced instead of removed. A more clever treatment of the entire site might create four buildings on the site, with the southernmost one addressing Washington or the Franklin/Washington corner, and similarly with the Randolph-facing side, but then the two center ones "facing" Court place, which could be converted to shared street style plaza with potential seating and sculptures. It could be all different uses, too. Maybe residential on Washington to synergize with the 200 W Washington condo building, commercial office space for the two buildings oriented to Court, and hotel on Randolph which could serve both business needs and the Randolph theatre and food scenes to the east and west, respectively. If they really wanted to be able to span the block, they could create a building with a tall arch-space over Court (I'm thinking 10+ stories high), which would look cool, enable large floorplates on upper floors, but preserve Court.

Improved landscaping of Court at the Wacker end could create a pleasant pedestrian passthrough and result in the kind of interesting, human-scaled public space that keep cities interesting. I'm thinking something comparable to Paternoster Square and pedestrian feeder alleys in London, or a mini version of the way Madrid's Calle de la Montera connects Gran Via with Puerta del Sol. During holiday seasons the space could have themed events or markets to liven up what is really one of the most boring parts of the Loop. With the General Growth building going away, the proximity of the cool public space associated with its replacement could end up turning the NW corner of the Loop area into one of the best parts, giving people something to walk over to from the west end of the Riverwalk.

If I remember correctly, it's because the same developer or management company (or someone else) owns one of the buildings adjacent to the lowrise portion of the building, and they are preserving the views for that property.

SSDD

Tishman is the developer of 130 N Franklin and the view they would be saving is 123 N Wacker which is owned by LaSalle Investment Management they would somewhat be saving views at 155 N Wacker and that is owned by John Buck

More office towers for Chicago
 

http://www.globest.com/sites/brianjr...ail&pt=Chicago


CHICAGO—Over the next year or so, landlords and developers in Chicago’s downtown office market will play very close attention to the amount of new space absorbed by users. Several class A towerswere recently opened, and if all that space gets quickly absorbed, it will almost certainly help push developers to launch additional projects that will transform the city’s skyline.

So far, the prospects for new development look promising. The overall vacancy rate in the market did tick up to 17.3% in the first quarter, an increase of 30 bps, according to a new market study by Newmark Grubb Knight Frank. But that boost was largely due to the delivery of 150 North Riverside during the quarter, and 444 W. Lake St. in the previous one, which added 2.4 million square feet of space to the inventory.

But demand for such trophy spaces has been strong. In the first quarter, users absorbed another 544,000 square feet of class A space. And companies from a diverse cross-section of industries continue to see the CBD as a desirable location.

“The demand is stronger today than we’ve seen it in the last eight quarters,” Bob Chodos, vice chairman of NGKF, tells GlobeSt.com, especially when it comes to healthcare, tech and law firms. “It’s exciting to see the number of tenants that are out looking for space.”

Bank of America, for example, plans to occupy about 500,000 square feet at 110 N. Wacker Dr., a proposed 51-story tower by Riverside Investment & Development and Howard Hughes that was recently approved by the Chicago Plan Commission. And many others have similar needs.

Researchers from NGKF recently found that, over the next few years, tenants needing a total of about 13 million square feet will test the Chicago market. “If I was a betting person, which I am, I would bet that in the next 18 months we will see another class A tower,” says Chodos.

chi-130 franklin (2)The vision for 130 N. Franklin, which will most likely be one of the next trophy office towers to break ground.
There are a number of options, he adds. Hines, the developer of 444 W. Lake, has a building pad at Wolf Point ready to go, and Tishman Speyer already has a design for a 1.1 million square foot tower at 130 N. Franklin. Another Fulton Market development on the scale of McDonald’snew headquarters also remains a possibility.

Beyond that, several windows of opportunity will open between 2021 and 2024, when the leases for several big players will expire. And as tenants this large typically begin their searches four or five years out, downtown developers will soon have to make important decisions.

Chodos believes the quick progress made at the newest trophy properties such as 444 W. Lake and 150 Riverside will boost these developers’ confidence. “These buildings have all opened substantially leased,” and the spaces opened up by these moves were also filled quickly.

Even buildings which opened in the trough of the recession, he points out, such as 353 N. Clark St. and 300 N. LaSalle, were occupied relatively quickly. The pair subsequently sold for the record-breaking prices of $715 million and $850 million, respectively.

That’s a sign of both the market’s tremendous vitality, and the disciplined approach taken by developers. “We haven’t experienced massive overbuilding.”

As chicubs111 mentioned today in the Highrise section, there are what appear to be updated renderings on the K+S website. Might not mean anything, but is worth noting.

https://www.ksarch.com/com-130-n-franklin

https://static.wixstatic.com/media/c...611_s_4_2.webp
Krueck + Sexton -- https://static.wixstatic.com/media/c...611_s_4_2.webp

Seems to have dropped by 2 floors according to the description on the website.

I hope this is still a viable proposal, but there has been a good amount of office space that has recently come online (River Point, 150 N Riverside) and soon to be UC (110 N Wacker). All the new office in the West Loop, as well as development of the OPO has the potential to soak up a lot of office demand as well.

I think this one will be on the back burner till the next cycle.

Really, those jerkoffs should’ve just left the old Chicago Mercantile Exchange building alone. Could’ve been converted to a hotel by now

yeah there shouldn't be wholesale lot clearing like this for projects at that stage

Yeah but good god I want this one built. Especially if they do some sexy lighting to emphasize the angles.

The building was over 95% occupied immediately before demolition. It was a goddamn travesty what they did. :hell:

i have a source high up in K&S who told me the project is still alive and as you can imagine they'd really like to see this one built, too. :P

Almost like it was done before any protections could be put in place for it.

This is probably going to get tenant later this year considering the nearby office towers are completed/ already have one. Office space in this area will be in demand later this year or next year. Would like to this tower rise earlier though. The new rendering looks amazing.

I'm sure Tishman would love to get it built, and is still courting tenants. But they've got a lot of competition, especially since the Loop isn't quite the center of attention like it used to be with new competition in the West Loop/Fulton Market and North Branch.

If/when the economy slows down, I think a lot of companies will retrench. My girlfriend's company is already consolidating their office space into one building, cutting their total SF footprint by 30% and switching to hoteling. Nobody is happy about the change except the bean counters...

One company's anecdotal troubles doesn't exactly spell out concern for me on a national level or for the office demand on the whole. No offense to your story...

Market pretty much tanked right after you wrote this......please do not do that again!!

The market did take a big hit today.

But, if you look at the reasons why, it's the paradoxical goofiness that defines our fickle little stock market. The economy is too good, wages are up, fears of inflation and thus rising interest rates, thus fears of rising borrowing costs, hence this could affect companies' bottom lines...

That may also mean that it's time to pull money out of stocks, lock in those record high gains, and put that money to work doing something else. Like building stuff.
Money sitting in stocks doesn't really do anything productive.

Not anecdotal or trivial, her company's decision will cause several hundred thousand SF to become vacant. Consolidation is a very real trend both nationally and in the Chicago market and it is a significant offset to the new office space demanded by real growth.

src: Newmark Knight Frank, 4Q17 Chicago Report

To me, that does not seem like a good environment to launch a new trophy office tower when the available space, in both old and new buildings, is outpacing real growth. But who knows, it only takes one big anchor tenant to launch Tishman's giant iceberg... :shrug:

The consolidation trend is indeed very real.

However, it can also actually play a role in some cases of encouraging new development (at the same time that this is causing overall vacancy to trend up, all else equal....which from a macro standpoint plays a role in discouraging new development overall).

The reason is that when large firms consolidate their space, they are often times looking for a single contiguous large block of highly efficient space. Where is it very easy to find a single contiguous large block of highly efficient space? As an anchor tenant in a planned office tower.

Obviously industries and individual firms vary greatly in their price sensitivity/occupancy cost consciousness....ranging from a firm that would never even seriously consider a new construction rental price point, to those for which it is almost a ‘default’.....but my point here is that the impact of tenant consolidation on new development in the office market is not straightforward....

Not every company needs a contiguous block of space. It comes in handy if you want to cut floorplates for glitzy stairways and amphitheater spaces, but if you're gonna ride an elevator between floors anyway, it doesn't necessarily matter whether you're riding one floor or nine.

Admittedly, the tiering of elevator banks can pose a problem for this if it forces people to transfer in the lobby or at an intermediate floor.

And yes, some companies may see consolidation as an opportunity to move to a new trophy tower.

Has there been any news on this tower? It's such a gem I'd love to see it get built.

Still looking for an anchor tenant AFAIK. I also hear the angled facade is out with the new design featuring a stepped massing similar to 110 Wacker.

The facade was the best part. If they stripped it down to "blah" design it's probably best that it misses this cycle.

Too many good buildings going up to have something so bland here.

Really? That's a shame, the angled "fractured" facade really was the most exciting part of this tower.

Boooooooooooooooooooo......................

that sucks, if true.

^how about an angled stepped back facade?...now that would be interesting

Fixed.

Ugh, if it's another box with a few setbacks, cancel her immediately

You aren't wrong, really. If this proposal has turned into another bland CNA Center type box, then honestly I'd rather it remain an empty lot until the next building cycle. Not too many Loop proper locations left; we really should be considering buildings with designs that reflect their esteemed neighbors.

Take this with a grain of salt because i dont know how reputable this site its but....


Summary

"Tishman Speyer Properties (TSP) is planning to undertake the construction of an office tower in Illinois, the US.

The project involves the construction of a 229m high, 51-story office tower of structural steel-framed building on 10.3ha of land with a gross built-up area of 130,064m2.

It includes the construction of meeting rooms, conference rooms, storage units, 1,301m2 of retail space, a sky garden, a 190-car parking garage and related facilities, and the installation of 26 elevators and safety and security systems.

Gensler and Krueck and Sexton Architects have been appointed as architects and Thornton Tomasetti, Inc. as the structural engineer.

On April 20, 2015, TSP unveiled the project plans.

In August 2015, the Chicago Planning Commission granted approvals.

In June 2016, excavation works commenced on the site.

Design activities are underway and scheduled to break ground on second quarter of 2018.

Scope
The project involves the construction of a 229m high, 51-story office tower on 10.3ha of land with a gross built-up area of 130,064m2 in Chicago, Illinois, the US.

The US$600 million project includes the following:"

http://www.jsbmarketresearch.com/con...roject-profile