Specialty insurance provider Argo Group signed a new long-term lease at 24 E. Washington St. in the iconic Marshall Field and Company Building.
The company will occupy about 21K SF on the ninth floor of the building, which Brookfield Properties recently restored, according to a press release. Argo will vacate its 19K SF office at 225 W. Washington St. early next year.
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“We are thrilled about moving into this new space,” Christian Vargas, Argo’s director of property services, said in a statement. “We strive to create dynamic office workspaces that cultivate collaboration, employee engagement and foster team building. The 24 E. Washington space presents us with an excellent location and stylish amenities that create a best-in-class employee experience.”
The deal lines up with the flight-to-quality trend that has seen tenants flock to newer, modernized buildings. Brookfield Properties restored and overhauled the 636K SF office building in 2021, adding tenant perks and gaining energy-efficiency improvements.
Class-A properties have fared better than their counterparts in Chicago's central business district, though not enough to stop the bleeding. Office vacancy in the CBD hit nearly 21% in the third quarter, and leasing activity dropped to its lowest level since Q1 2021, with less than 663K SF signed, according to a JLL report.
Argo joins a growing tenant roster at the building after major companies such as Olam International, Ferraro North America and Spot Logistics signed leases this year for 80K SF, 45K SF and 31K SF, respectively. The property is 61% leased, according to CoStar data obtained by Crain's Chicago Business.
The building is a Chicago Landmark, a National Historic Landmark and has been listed on the National Register of Historic Places since 1978.
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