RMC Group Fills Vacancy in Weak Suburban Chicago Office Market

Group RMC scored a tenant for UnitedHealthcare’s former suburban office space with a lease from Ryerson.

The Chicago-based metal distributor leased 46,000 square feet in the Corridors II office building at 2655 Warrenville Road, Crain’s reported. Cushman & Wakefield’s Jordan Rovito and Dirk Riekse negotiated the lease for Ryerson, while CBRE’s Peter Adamo and Adam Lawler represented Group RMC.

Corridors II is part of a three-building office complex in Downers Grove. The New York-based investor acquired it a few years ago for close to $100 million.

Ryerson CEO Edward Lehner plans to relocate to the company this fall, leaving behind its 54,000-square-foot Class B space at 1050 Warrenville Road. That three-story building changed ownership in 2021 after a foreclosure sale and is owned by investor Jesse Spencer.

The Corridors II deal keeps Group RMC’s 150,000-square-foot building nearly fully occupied despite the departure of UnitedHealthcare, which vacated 51,000 square feet earlier this year.

The Minn.-based health insurance giant originally occupied nearly 93,000 square feet in the building but downsized before moving out. Oak Street Health backfilled a portion of the former space in 2021.

Newer, well-maintained office buildings continue to attract tenants despite challenges in the broader office market. Since the pandemic, companies seeking to encourage in-office work have shown preference for updated Class A properties, while older buildings have struggled to retain tenants.

Businesses that have promoted in-office work in the wake of the pandemic have opted for renovated Class A offices, while aging properties have faced tenant losses. By enhancing amenities and making tenant improvements, Group RMC stands out from landlords unwilling to reinvest in properties that have declined in value.

The office vacancy rate in suburban Chicago reached a record 32 percent at the end of last year, up from 30.2 percent the year before and 22.1 percent at the pandemic’s onset.

Over 1.1 million square feet of suburban office space was emptied last year, pushing the total vacancy since 2020 past 4.5 million square feet. While some businesses are returning to offices, overall demand remains sluggish.

— Andrew Terrell