Blue Owl Capital Doubles Chicago Office Space

Blue Owl Capital has increased its Chicago office space by adding 27,000 square feet to its lease in a West Loop office tower.

The New York-based investment firm doubled its local presence by securing space on the 36th floor of the 54-story building at 150 North Riverside Plaza, Crain’s reported

The firm, led by co-CEO Mark Lipschultz, subleased 27,000 square feet on the 37th floor from William Blair last summer. Blue Owl relocated from 12,000 square feet at 30 North LaSalle Street.

Riverside Investment & Development owns the 1.2 million-square-foot tower. Another tenant, consulting firm Guidehouse, is vacating two floors in May. It is moving to the Fulton Market District, where it has subleased 47,000 square feet at 167 North Green Street.

Blue Owl’s recent growth has been fueled by its success in private credit lending, as well as its investments in real estate, including its $950 million acquisition of Oak Street Real Estate Capital in 2021 and its $200 million purchase of the Chicago Tribune Freedom Center in 2022. The deal for the Tribune Freedom Center was part of a highly profitable arrangement with gambling company Bally’s.

Blue Owl’s real estate holdings have gone from $12 billion to over $28 billion.

The lease expansion comes as many downtown landlords are grappling with declining office demand and record-high vacancies. The office vacancy rate in downtown Chicago hit 26.3 percent at the end of last year, making the 10th consecutive quarter of rising vacancies, according to CBRE.

The decline in office demand precipitated the loss of 1.6 million square feet of occupied tenant space in 2024, marking one of the worst years for office leasing in recent history. Riverside’s tower remains 98 percent leased despite the leasing challenges downtown.

— Andrew Terrell