Big Office Subleases Listed in Downtown Chicago

Several companies in downtown Chicago are rethinking their office needs, contributing to leasing attrition in an already struggling market.

Guidehouse, a Virginia-based consulting firm, recently subleased nearly 47,000 square feet at 167 North Green Street, a 17-story office building in the Fulton Market District, Crain’s reported.

New York-based Kroll, which secured space on the 12th floor of the Green Street building prior to the pandemic, is downsizing and relocating to a smaller office at 1 South Wacker Drive, a 40-story tower owned by 601W.

In turn, Guidehouse will assume Kroll’s 12th-floor office, relocating from 150 North Riverside Plaza, where its two floors will be available for sublease starting in May.

Companies like Guidehouse often prefer subleasing because it allows them to release excess space without incurring the high costs of typical office leases.

MoLo Solutions is another company contributing to the sublease market in downtown Chicago. The third-party logistics provider recently began marketing its 15th-floor space at 167 North Green Street, adding to the 47,000 square feet on the floor below that it has been offering for sublease since mid-2023.

Kroll and MoLo’s combined offering totals nearly 94,000 square feet, making it one of the largest sublease listings in the downtown office market. MoLo, which was acquired by ArcBest in 2021, has not confirmed whether it is seeking another office space in the city.

The increased number of sublease listings reflects a broader trend in the downtown office market, where companies are increasingly reducing their office space as remote and hybrid work arrangements become more common.

Over 6 million square feet of office space were available for sublease in downtown Chicago at the end of last year, according to CBRE. For landlords, this growing supply of subleased space presents a challenge as they compete for tenants in a market that has been impacted by shifting work patterns.

— Andrew Terrell