FINRA to Slash Chicago Office Footprint by 33%

Another office tenant in Chicago is ditching its downtown digs for a smaller space elsewhere in the city, prolonging a trend that’s contributed to record-high vacancies in 11 of the last 13 quarters.

The Financial Industry Regulatory Authority, responsible for writing and enforcing rules for Wall Street brokers, is in advanced talks to lease about 40,000 square feet across two floors in the 23-story West Loop building at 101 North Wacker Drive, Crain’s reported.

If finalized, the organization, known as FINRA, would relocate from its longtime home at 55 West Monroe Street, where it occupies 61,200 square feet. Its lease expires at the end of the year.

FINRA would join a long list of companies slashing their office footprints in light of the remote-work era. Last year, net absorption for downtown office space was in the negative for just the second time since 2010, the outlet reported, citing CBRE.

FINRA has adopted a hybrid approach, allowing in-office and remote work and “an open, more flexible and collaborative office environment,” at its locations across the country, a spokesperson told the outlet.

The lease would also follow a pattern of Central Loop tenants relocating to West Loop, attracted by newer, amenity-rich buildings closer to commuter trains. Notable companies like Bank of America and BMO Harris have made similar moves, signaling the West Loop’s growing popularity among businesses and developers alike.

For LaSalle Investment Management, the owner of 101 North Wacker since 2014, securing FINRA as a tenant would mark a significant win. The building, which is just over 70 percent leased, will soon have a big hole to fill, as its largest tenant, TTX, prepares to relocate its headquarters to North Carolina.

Conversely, FINRA’s move would pose challenges for the owner of 55 West Monroe, Manulife, which acquired the 40-story building for $243 million in 2014, when it was 92 percent occupied. With a vacancy rate of 67 percent as of late 2022, FINRA’s planned departure looms large.

—Quinn Donoghue