Relativity Cuts Footprint By 45% In Beacon’s 231 S. LaSalle

Beacon Capital Partners is maintaining one of its largest tenants in a LaSalle Street office building, but it’s a downsizing move that will drive up Chicago’s sky-high office vacancy rate.

Tech company Relativity has signed a new lease for just under 100,000 square feet in the 23-story building at 231 South LaSalle, a cut of about 45 percent from its current footprint of roughly 180,000 square feet, Crain’s reported.

CBRE’s Brad Serot and Paul Reaumond represented Relativity in lease negotiations, while Jack O’Brien and Matt Whipple of Telos Group represented Beacon.

Companies shrinking their space has become the norm amid the remote-work trend, which has contributed to a record-high vacancy rate of nearly 23 percent in the Windy City. It’s a reality that landlords have had to accept. Thus, maintaining tenants, even if it means less occupied space, is a relative win for property owners in some cases.

Keeping Relativity was especially crucial for Beacon, as its largest tenant, Northern Trust, prepares to vacate its 200,000-square-foot space in the building.

“We are pleased that Relativity, a recognized legal technology company, has reestablished their commitment to LaSalle (Street) and the Central Loop by continuing to make 231 S. LaSalle their long-term HQ,” Beacon’s Kevin Boraca told the outlet.

Beacon, whose CEO is Fred Seigel, bought the LaSalle Street building for $162 million in 2017 and has since added a restaurant in the lobby, renovated the tenant lounge and fitness center and added a new rooftop deck.

Like many companies in recent years, Relativity’s downsize followed a round of layoffs. In December, the company announced it had dismissed about 150 employees, or about 10 percent of its workforce.

Other tech companies, like Meta and Salesforce, have also dramatically trimmed their operations after massive layoffs.

—Quinn Donoghue