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-   -   CHICAGO | Post Office Redevelopment (https://skyscraperpage.com/forum/showthread.php?t=192697)

OhioGuy Dec 13, 2018 5:29 PM

So we attract another suburban company. Good news certainly... now if we can attract more from outside Illinois. Apple just announced big employment plans in several cities, most notably Austin, but Chicago isn’t on the list. With OPO’s big wide open floor plans, seemingly suitable for modern tech industry, hopefully we’re able to gain some noteworthy additions soon (of course Salesforce is good but heading elsewhere along the river).

LouisVanDerWright Dec 13, 2018 6:23 PM

Oh shit, what drama, White Oak partners announced Ferrara would be moving to 625 w Adams as the first tenant earlier this year:

https://therealdeal-com.cdn.ampproje...-west-adams%2F

Looks like 625 will be staying empty a while longer. Apparently the 20 floor Fifield econobox model no longer works in a world full of Fulton Cold Storages and OPOs...

k1052 Dec 13, 2018 6:47 PM

Quote:

Originally Posted by LouisVanDerWright (Post 8407583)
Looks like 625 will be staying empty a while longer. Apparently the 20 floor Fifield econobox model no longer works in a world full of Fulton Cold Storages and OPOs...

Plus all the office space put on the market by big tenant moves like Hyatt, DLA, etc into new towers. More of that coming too.

Maybe just convert 625 to apartments or something...

Suiram Dec 13, 2018 8:33 PM

Quote:

Originally Posted by LouisVanDerWright (Post 8407583)
Oh shit, what drama, White Oak partners announced Ferrara would be moving to 625 w Adams as the first tenant earlier this year:

https://therealdeal-com.cdn.ampproje...-west-adams%2F

Looks like 625 will be staying empty a while longer. Apparently the 20 floor Fifield econobox model no longer works in a world full of Fulton Cold Storages and OPOs...

This will be a legit problem for non-riverfront office buildings and just generally the office market. Typical prime tenants are consolidating space per staff while the companies that can are moving towards either "creative" loft offices or flagship prime buildings (BOA, Salesforce, BMO, etc).

Mediocre traditional offices will struggle to rent while older half empty buildings will need to seriously think about how to re position.

I think some of these will just need to lower the rents. Buildings like 625 may go bankrupt and get restructured by a buyer taking lower rents, stealing the second half of the tenant base from a half vacant building on Lasalle that cant replace their big bank/law firm tenant. 625 is still a better option and if its cheap, companies will take it.

simon07 Dec 13, 2018 8:38 PM

Quote:

Originally Posted by LouisVanDerWright (Post 8407583)
Oh shit, what drama, White Oak partners announced Ferrara would be moving to 625 w Adams as the first tenant earlier this year:

https://therealdeal-com.cdn.ampproje...-west-adams%2F

Looks like 625 will be staying empty a while longer. Apparently the 20 floor Fifield econobox model no longer works in a world full of Fulton Cold Storages and OPOs...

625 W. Adams has been almost completely leased by CDW.

k1052 Dec 13, 2018 9:06 PM

Quote:

Originally Posted by simon07 (Post 8407809)
625 W. Adams has been almost completely leased by CDW.

Somehow I totally forgot about CDW. I'll blame it on the lack of sunlight.

killaviews Dec 14, 2018 3:56 AM

There is a video on the site I haven’t seen yet. Maybe not a lot of new info, but that rooftop is EVERYTHING.

http://www.post433.com

The Pimp Dec 14, 2018 12:24 PM

Ferrara Candies moving in. 400+ Folks

HomrQT Dec 15, 2018 10:17 PM

Quote:

Originally Posted by The Pimp (Post 8408553)
Ferrara Candies moving in. 400+ Folks

Anyone know what's happening to the candy factory in Forest Park? Is it staying?

Busy Bee Dec 15, 2018 11:22 PM

I could be wring but I think production is staying in Forest Park (instead of moving to some random industrial park in the far burbs)

Bombardier Dec 16, 2018 2:25 PM

Quote:

Originally Posted by LouisVanDerWright (Post 8407583)
Oh shit, what drama, White Oak partners announced Ferrara would be moving to 625 w Adams as the first tenant earlier this year:

https://therealdeal-com.cdn.ampproje...-west-adams%2F

Looks like 625 will be staying empty a while longer. Apparently the 20 floor Fifield econobox model no longer works in a world full of Fulton Cold Storages and OPOs...

Quote:

Originally Posted by simon07 (Post 8407809)
625 W. Adams has been almost completely leased by CDW.

It's premature to say that model is dead. 333 N Green and shortly thereafter 330 N Green are both set up for success by Sterling Bay even while competing with the larger format offices like 110 Wacker, Union Station, and WPS. I would say the leasing of 625 could have been executed better.

Leveled Dec 16, 2018 4:08 PM

Quote:

Originally Posted by Suiram (Post 8407798)
This will be a legit problem for non-riverfront office buildings and just generally the office market. Typical prime tenants are consolidating space per staff while the companies that can are moving towards either "creative" loft offices or flagship prime buildings (BOA, Salesforce, BMO, etc).

Mediocre traditional offices will struggle to rent while older half empty buildings will need to seriously think about how to re position.

I think some of these will just need to lower the rents. Buildings like 625 may go bankrupt and get restructured by a buyer taking lower rents, stealing the second half of the tenant base from a half vacant building on Lasalle that cant replace their big bank/law firm tenant. 625 is still a better option and if its cheap, companies will take it.

They can go condo.

SteelMonkey Jan 9, 2019 6:33 PM

Adding another small tenant

https://www.chicagotribune.com/busin...109-story.html

jpIllInoIs Jan 9, 2019 7:02 PM

Quote:

Originally Posted by SteelMonkey (Post 8430928)

shrug: no gain..

ithakas Jan 9, 2019 7:44 PM

Quote:

Originally Posted by jpIllInoIs (Post 8430983)
shrug: no gain..

It's 1/4 of the space Walgreens has in the building, so not too small of a gain.

This puts the Old Post Office at roughly 325,000 square feet rented out of 2.5 million total.

The Lurker Jan 9, 2019 9:00 PM

A patchwork of smaller tenants doesn't sound like a bad thing. It may take time but I don't see this trend of corporate relocations to the CBD reversing any time soon. And it sure beats having the thing sit in disrepair for another decade.

RedCorsair87 Jan 10, 2019 4:11 AM

Travel along I-88 into the burbs. There are plenty of office parks for the OPO to steal from in the future.

SamInTheLoop Jan 10, 2019 9:43 PM

Quote:

Originally Posted by SteelMonkey (Post 8430928)

To tell you the truth, I had no idea the CMAP would take up nearly that much space!

jpIllInoIs Feb 23, 2019 2:41 PM

New tenant for OPO
 
Real Deal: Ad Agency signs for 87K sq ft.
A fourth tenant signed a lease to move into 601W Companies’ redeveloped Old Main Post Office, meaning about 15 percent of the 2.8-million-square-foot complex is now accounted for.

Chicago-based ad agency AbelsonTaylor signed the 15-year lease for about 89,000 square feet in the massive building, according to the Chicago Tribune. The firm will move at least 100 employees from its existing offices at 33 West Monroe Street.

The Tribune story says that space allows for 100 employee expansion with 50 coming on board in 2019.

Ned.B Feb 23, 2019 3:52 PM

Quote:

Originally Posted by jpIllInoIs (Post 8484660)
A fourth tenant signed a lease to move into 601W Companies’ redeveloped Old Main Post Office, meaning about 15 percent of the 2.8-million-square-foot complex is now accounted for.

Chicago-based ad agency AbelsonTaylor signed the 15-year lease for about 89,000 square feet in the massive building, according to the Chicago Tribune. The firm will move at least 100 employees from its existing offices at 33 West Monroe Street.

The Tribune storysays that space allows for 100 employee expansion with 50 coming on board in 2019.

If I read that right, that's an eventual 200 employees? That's an extremely generous 450 square feet per employee.


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