Is this actually gonna be a Google office, or is Google just gonna own the building and be a landlord? Fulton Market fits their image as a company with a youthful, trendy workforce... Thompson Center is a cool building, but in a deeply uncool area.

Also, how does Reschke fit into this? Is he just taking the building from the state, doing a build-to-suit and then selling to Google? Big companies usually prefer to work with local developers who can navigate the complicated process of entitlements and construction. Or is Reschke out completely? I have lots of questions!

It’s certainly out of left field, isn’t it?

But here are the State of Illinois and The Prime Group signing this buyback deal, and then along comes Google shopping for offices a few weeks later. Doh!

Bet that state deal got jettisoned out the airlock faster than light speed.

https://www.chicagotribune.com/polit...oam-story.html

Deeply uncool--until Google moves in and all the vacant office space (that costs a tiny fraction of comparable spaces in similar neighborhoods in SF and NY) downtown suddenly becomes very attractive to smaller tech companies... Pretty much the same thing happened in Fulton Market, right? There's been lots of talk of Google adding lots of new jobs in Chicago, maybe their Fulton Market office will be for engineers and tech workers and the new space would be for the front facing roles?

Unless I'm misreading this totally. Does Google have a RE arm now?

That's what I'm wondering, maybe Google is just looking to park cash in urban real estate at a time when other kinds of investments are not looking good.

Last I heard, they were fully committed to expanding in Fulton Market, either with Sterling Bay or another developer. If they're anything like Amazon in Seattle, they don't need their buildings to be connected or directly adjacent, but they need to be within walking distance of each other, not a mile apart.

is there a non-paywalled version beyond the headline? any details beyond the headline?

Exactly. Google could go into the uncoolest area and magically make it cool. Not many people actually thinks meatpacking itself is cool but Google showed up to it in Chicago and voila.

Google is investing in real estate but I think everytime they do it, they put some offices in there. Just like McDonald's at least. They own the real estate but also have their business on/in it. I'm not aware of any specific real estate investing arm that Google or its parent Alphabet has. They have typically invested via venture capital but buying real estate and purely being a landlord without them having offices there would be a first

If Google were just looking to park money in real estate, would the Thompson Center really be the first choice? That’s not minor upkeep and some repairs. The building needs hundreds of millions of renovations just to start. The original Reschke plan is about the most cost effective plan for the building itself.

And then The Prime Group last month started negotiating for other LaSalle properties. That’s an awful lot of confidence.

https://therealdeal.com/chicago/2022...le-street/amp/

https://y.yarn.co/96bfec3a-4b97-4789...8088d_text.gif
_

Here are some details

the linked articles does state that this would be google office space, but google does have a significant investment operation and they lend their cash on hand (the billions of it) for things like car loans and credit cards.

Crains has a story in it now saying Google is looking to hire 1000 more people in Chicago. They are running out of space in Fulton Market and looking to buy some space downtown around LaSalle including Thompson Center and former B of A building at 135 S LaSalle.

This is Exhibit A of why I’ve been skeptical of the “CBDs are over” chatter.

Sure, there’s a few historically significant dinosaurs in the Loop that are only suitable for residential conversion. But the Loop is simply the best neighborhood for scaling up quickly and handling large workforces.

Oh yeah. Depends on the building but definitely faster to scale up at times than building a completely new building. The Loop has the bones to actually be something cooler. Not that Midtown Manhattan is cool but I think The Loop could be better if it had more variety like there. Basically all you need is Google to go in there with like 500+ well paid employees and voila.

I've been working downtown mostly since last fall and there's definitely way more activity now down there than 5 or 6 months ago. It feels like something again - definitely way more people there. I always enjoy reading these stupid comments about how people are afraid to come to The Loop and nobody is there. Seems like those people haven't been downtown since December or January.


Google's shopping for more office space—and not just in Fulton Market

https://www.chicagobusiness.com/comm...e-office-space

Walked to the Prudential today for lunch and it was nice seeing a combo of tourists and office workers all strolling around.

I'm convinced that at least 75% of the people who shitpost about Chicago online don't actually live here or haven't been to whatever areas they're talking crap about for 2 years.

You are describing John Kass and his readers/supporters to a T.

Most live in Indiana. I mean there's nothing better else to do out there in that wasteland so I get it.

John Kass lives in Indiana lol

It's actually insane. There are groups on Facebook that will have comments like "I moved away from Chicago in 1965 and haven't been back sense. OMG it's such a bad city now."


The Loop part is funny. There's definitely way more people downtown working now and at least during those hours at least it doesn't feel any more dangerous than say 2015. Back in November, December, etc it didn't feel like that either but way less people than now. I think people confused their feelings of safety sometimes with less people on the streets. I do think it's vital for these areas to be active again. Kind of a hard balance between knowing that a lot of people don't have to work in the office all the time to get work done vs. knowing that these areas need to stay vital still (and residential conversions may take awhile so...).

Love it! I was indifferent to this building as I always thought it would be some cheap renovation. Keep it going Chicago!

- Reschke says his deal with the state is still active and he does not have a deal to flip to Google.

- Google says they are exploring multiple downtown properties, not just the Thompson Center

- The state (Gov. Pritzker) won't comment.


My guess is that Ryan Ori heard a rumor and decided to publish a story without full confirmation. Maybe Google ends up buying JRTC from the state or from Reschke, but there is not a deal struck yet.

Sounds about right. Google's response is telling tho. They just said oh..we are hiring 1000 more and need more space. They never denied that they're probing these buildings for purchase and never denied trying to have a new office in The Loop.

Correct. The initial CoStar report says as much. "The deal is not done yet and could change."

The interesting thing to me about this rumor is that, if the goal is to have something that allows them to quickly scale up, why go with a property that needs extensive renovations? This city is filled with sub-leasable space that could meet their needs. If they do go this route, the ability to scale quickly may be less important than getting an iconic building.

This is the catalyst needed to revive LaSalle. Regardless of whether Google buys the Thompson Center or one of the other mammoths on LaSalle this is game-changing news for the street if it actually happens.

Fantastic news.

GOOG will probably make a splashy headline about it being their new hi tech retail experience or integrated retail work transit hub and drone base to cheering fans but it will really be the heart of their new dystopian surveillance net. You can't escape it. Don't even try.

Because there are specific requirements that they have that may not fit that bill. At the end of the day, working remotely in that period of time or figuring out how to utilize the existing space with hybrid approach may work better.

Or they could do what you are saying but temporarily. Companies like Google with a lot of money aren't typically going to go with a cookie cutter office layout. They have specific requirements but cookie cutter could absolutely be an interim solution until a build out is complete.

My company did this while building out a new NYC space. We went into an older building that wasn't great but we could still work. A year later when renovations were done we moved to the new office.

Agree - It would be exciting and valuable to have a major top tier tech presence in the Loop.

The Thompson center was supposed to symbolize transparent government, but instead it may become Alphabet's panopticon. Love it.

Interesting stuff from the developer:

Can Mike Reschke save the Loop?
Hope for a downtown real estate revival rests on the veteran developer's shoulders.
https://www.chicagobusiness.com/comm...n-chicago-loop

Can you please stop posting articles that folks cannot access.

Work harder and make more money idk

Hmmm. As Northwestern physician I kinda thought I was already doing well. I guess not.

Or, and here's an idea, don't.

https://www.google.com/amp/s/thereal...naissance/amp/

I’m not going to pin this on just Indiana, but these people think living an hour from Chicago and watching the local news is enough for them to be experts online about the city. It’s obnoxious nonsense much of the time.

Why are we unable to access the article?

Or do you mean that you're just too cheap to pay for journalism?

No. He means we, yes we, are unable to access the article.

I appreciate the links even if they are not accessible to all for free. It's not some sort of powerplay to flex your crains subscription lol. It's probably the most relevant publication to this website forum.

Turns out this is actually a mid 2000s website forum and NOT a federally protected space where everything must be 100% accessible to all.

Please explain in what way we're "unable to access the article." What error message do you get?

Or do you mean it in the same sense that we're also "unable to access" the Sunday brunch buffet at the Peninsula Hotel?

https://www.chicagobusiness.com/comm...hompson-center

Ok, it's official, Google is buying the Thompson Center. Reschke is still going to handle the renovations.

Big news, potentially exciting.

Bringing Google to Chicago's Thompson Center

https://blog.google/inside-google/co...ompson-center/

Wow. I guess this whole situation turned out better than expected...

"And I, for one, welcome our new Google overlords."


But kidding aside, great news for the building, and the Loop in general.

I dig it. This is a big sign of confidence in the Loop in an era of ghost town CBDs. Hopefully a sign of more investment to come!

Salesforce tower on Wolf Point and now Google in the Loop. Wow things change fast!

great news on google.

but what happened to the other guy who was going to buy and renovate? did he just get booted?

also google is saying it cost them $100 million but I though the other guy was going to pay like $250 million? maybe that higher number included the renovation?

edit: crains is saying that guy (whatever his name is) is still going to renovate the building for google so I guess he is still involved

I'm happy the Thompson Center will be saved, but it's intended as a piece of public architecture, not the local palace of our corporate-tech overlords. I liked the original Reschke plan because the state would move back into the building at the end, but the public spaces could be renovated more creatively.

Now Google is taking the city's grandest interior rotunda, our local PoMo outpost of the Illinois State House, and the state is moving to a buttoned-up corporate tower on LaSalle St where bureaucrats get to hide themselves away anonymously. It's the cheapening of our public space, just like the Old Post Office getting substituted with a lowrise shitbox in the 90s and eventually becoming the local palace of Uber. Or the beautiful concourse of Union Station getting torn down for an ugly office tower and turning the station into a cramped rabbit warren. We get the urbanism we deserve, I guess - it's just sad.

(fwiw, the Harris Bank complex on LaSalle is a great piece of modernism, it's just not public-spirited the way JRTC is)

Really happy to see this. As others have noted, it sends a strong signal that, despite certain media outlets, downtown Chicago is not crumbling, but is on track to thrive in a post pandemic world.

The building really does seem like it's perfect for Google. Happy to see them invest into it. I wonder if this will have impact to the blocks immediately around it in terms of street level retail/restaurants, etc.

Best outcome for the building IMO.

While I understand this concern, one has to wonder if a public remodel option was even feasible here? It would require funding from the city, and they are already heavily distracted by other major projects.

Is it possible Google maintains a small public area for folks to enjoy? One can hope.

Anyone know if Google will be consolidating all their offices at the Thompson Center, or if they plan on keeping their Fulton Market campus? Considering their exponential growth in the city, I think they might need to retain both for the number of workers they currently have and plan on growing to.

Source: https://blockclubchicago.org/2022/07...ompson-center/

This is an interesting tidbit. How did 115 S LaSalle get involved in this deal? Was this property owned by Google or Reschke? I assume the state will assume ownership of this building and not lease their offices in there. Either way, consolidating offices all in one location would be a good thing for the state, both from a financial as well as operations perspective.