Union Investment Finds Tenant for Chicago Tower’s Top Floor

A Washington, D.C.-based law firm is relocating its Chicago operations from one Loop tower to another.

Venable is nearing a deal to lease 25,000 square feet in the 51-story high-rise at 111 South Wacker Drive, Crain’s reported, citing people familiar with the matter. If finalized, the firm would exit 227 West Monroe Street, a block away.

The company plans to occupy the top floor of the 1.2 million-square-foot Union Investment-owned building, a space previously leased by New York-based law firm White & Case, which is relocating to Irvine office tower at 300 North LaSalle Street.

JLL’s Steve Steinmeyer, Rob Schmidt and Isabelle Montagne are representing the law firm in negotiations, while Jamey Dix and Matt Whipple of Telos Group are handling the lease for Frankfurt, Germany-based Union Investment.

Venable’s pending relocation underscores the post-pandemic trend of tenants seeking premium office space. The firm entered the Chicago market in late 2020 and has grown its team significantly, positioning itself as a key player in construction law and litigation.

The office vacancy rate in downtown Chicago neighborhoods sits at about 26 percent. But premium office buildings with commanding views of the city remain in demand, with vacancy for such properties under 5 percent, according to CBRE.

Union Investment is closing in on a deal with Venable but will lose another tenant once Dallas-based law firm Locke Lord exits its nearly 90,000 square feet for a move to Onni Group’s 225 West Randolph Street.

Not accounting for the pending departures of Locke Lord and White & Case, the Wacker Driver tower is just over 90 percent leased, according to CoStar Group.

The owner of 227 West Monroe Street, Tishman Speyer, will need to fill about 100,000 square feet of combined space after Venable and FTI Consulting relocate.

— Andrew Terrell