Allianz Shedding Office Space in Downtown Chicago Move

A German financial services firm is set to become the latest tenant in John Buck Company’s Wacker Drive office tower, a move that would trim its footprint by 62 percent.

Allianz is nearing a deal for 28,000 square feet at 155 North Wacker Drive, a reduction from the 73,200 square feet it occupies at Agave Holdings’ 225 West Washington Street, Crain’s reported. The firm is expected to occupy an entire floor in the 46-story tower, according to sources familiar with the matter.

The Munich-based firm has not commented on its reasons for the move, but it may exercise an early termination option at West Washington that lets it end its lease, set to run through 2031, in March 2026.

CBRE’s Kyle Kamin and Jon Milonas are managing the sublease of Allianz’s current space and negotiating the lease at North Wacker, which is positioned as a move-in-ready office with features like a tenant lounge and event center. Newmark’s Bill Rolander is representing John Buck.

Allianz’s shift to North Wacker is a win for John Buck, which has been on a leasing streak after losing two major tenants, law firm Skadden Arps Slate Meagher & Flom and Vizient.

Some of the building’s more recent tenants include Ryan Specialty Group, UL Solutions, FTI Consulting, and Smith Gambrell & Russell.

Miami-based Agave Holdings, the real estate arm of the family-owned company that makes Jose Cuervo tequila, bought the West Washington building almost three years ago for nearly $83 million, about the equivalent of seller Kinship Capital’s debt on the building.

Filling the large vacancy could prove challenging in today’s high-vacancy environment. Allianz’s exit will leave a significant gap, but the early termination may result in a fee payable to Agave.

Allianz, along with many other companies, has adopted hybrid or remote work models, leading to a reduction in office space and a shift toward more modern buildings. The trend has contributed to Downtown Chicago’s significant tenant exodus since 2020, with 1.7 million square feet of office space left vacant, pushing the vacancy rate to record highs.

— Andrew Terrell