A growing Chicago law firm is flipping the script by nearly doubling its Loop office space instead of downsizing.
Goldman Ismail Tomaselli Brennan & Baum leased 43,000 square feet at 191 North Wacker Drive, Crain’s reported. The firm plans to relocate early next year from its 22,000-square-foot office at 200 South Wacker Drive after ending its lease in the 41-story tower five years ahead of schedule.
Goldman Ismail will occupy one and a half floors in the 37-story tower, owned by Toronto-based Manulife and German financial service firm Allianz. Cresa Chicago’s Michael Marrion negotiated the lease for Goldman Ismail. Transwestern’s Eric Myers, Katie Steele and Kathleen Bertrand manage leasing.
The move comes months after Manulife and Allianz inked a deal with Neuberger Berman, bringing occupancy to about 72 percent.
Goldman Ismail’s expansion bucks the trend of widespread downsizing among office tenants in Chicago’s central business district.
Many companies have reduced their office space in response to remote work trends, contributing to a downtown vacancy rate of 26.3 percent. The decrease in office space demand is also affecting landlords, which have now seen vacancies rise for 10 consecutive quarters.
Manulife previously owned 200 South Wacker Drive but lost the property following a foreclosure lawsuit by the Bank of China. Glenstar and Minnesota investor Patrick Halloran acquired the building in December and are investing $30 million to renovate the property.
Glenstar and Halloran will receive a termination fee from Goldman Ismail as they look for tenants to backfill the vacated space.
Another company rethinking its downtown office space is Legal Aid Chicago. The nonprofit is downsizing from its 55,000-square-foot office at 120 South LaSalle Street to a smaller 32,000-square-foot space at 200 North LaSalle Street.
— Andrew Terrell
Read more
