River Point: The Future of Office
Hines just broke ground on 960k SF River Point (444 W Lake), the first spec office tower downtown in more than a decade, so we made sure to include senior managing director Tom D'Arcy on the panel at the upcomingBisnow Chicago State of Office event Thursday, April 25. Tom is leading leasing at the 50-story River Point (2017 delivery), which secured anchor tenant McDermott Will & Emery for 225k SF earlier this year. Tom tells us the confluence of falling vacancy, no new supply, tenant migration to the city, and growth in the tech sector will result in a strong office market for the next few years. (And the stapler industry gives a rowdy cheer.)
Office market hurdles include political gridlock in DC and lack of clarity around taxes and federal regulation making companies apprehensive to hire and spend more, Tom says. The biggest game changer for River Point, a project that began in 2005, was finding a JV partner in Montreal-based Ivanhoe Cambridge that is funding the lion's share of the capital ($300M+). In fact, international capital has grown significantly for both development and acquisitions in Chicago, Tom notes (Seoul-based Mirae Asset Global Investments just picked up 225 W Wacker). In spite of Chicago's spotty weather, the world still wants to buy our buildings.