New Fulton Market Tower Scores Another Tenant, Continuing Neighborhood's Hot Leasing Streak
Tishman Speyer landed another tenant for 320 North Sangamon St., a 13-story Fulton Market tower the company opened last year. Applied Systems, a software company based in south suburban University Park, agreed to occupy 10K SF on the building's seventh floor starting in July, according to a report in Chicago Business Journal.
It is the firm's first downtown Chicago office. The deal also continues a strong run of software and tech firms choosing to open up offices in several of Fulton Market's new trophy spaces.
The activity is providing neighborhood property owners with much-needed relief. The opening of several nearly empty towers during the pandemic sent Fulton Market's vacancy level soaring, topping out at 33.3% in Q2 2021.
But after more than 700K SF of positive net absorption in 2021, the vacancy rate sank to 26.4%, according to Colliers International. And that rate is still declining.
"Leasing activity is expected to increase exponentially as this submarket offers unrivaled building and area amenities," Colliers reported. "Despite high vacancy due to many new buildings completing construction in the past two years, activity is picking up and vacancy has peaked and is decreasing."
Applied Systems plans to keep its University Park headquarters. It will use the Fulton Market space, designed by Chicago-based Charlie Greene Studios, to recruit and onboard new employees, as well as host events for customers and partners.
“Our new downtown Chicago location puts us in a strong position to recruit top talent in the heart of Fulton Market’s growing tech hub,” Applied Systems CEO Taylor Rhodes said in a statement.
Biotech startup Hazel Technologies and restaurant technology company Tock each occupy about 50K SF at 320 North Sangamon. Real estate tech firm VTS also just committed to nearly 36K SF in the building, which Tishman Speyer co-developed with Chicago-based Mark Goodman & Associates.
The tower is now 78% occupied, Tishman Speyer Managing Director Adam Mitchell told Chicago Business Journal.
Steve Bauer, Adrian Boone and Chad Koenig of Cushman & Wakefield represented Applied in the transaction. Mitchell, Ellen May and Olivia Parker of Tishman Speyer were the in-house representatives who negotiated the deal.