NORTH JOINS THE TENANT FRAY

It’s no longer a battle between the East and West loops for office tenants. In fact, neither has much spacelarge enough for big occupants to fight over at the moment. And if it’s lifestyle that corporations are craving for their employees—well, they'll have to go north. The CBD is still where it's at, but competition from the north flank may be enough to spark more 24/7 amenities Downtown.
 
JLL’s Steve Smith (with daughter Julia and wife Jill) clearly prefers living on the edge—not because he’s on the wrong side of that danger sign, but because he works on both sides of the CBD. Few quality 100k SF-or-larger blocks of space are currently available there, he says, and only four 200k or larger (three of them Class-A). Direct CBD vacancy is near 14%, but smaller tenants can also look in Streeterville and River North, where there’s more residential and nightlife. Those amenities are what's driving corporate real estate decisions in other major markets. In fact, 300 N LaSalle and 353 N Clark, completed in ’09, are almost fully occupied.
 
In the CBD, both loops have their advantages. Steve reps the East’s Aon Center (with a stunning view of Millennium Park and the lake) with colleague Mike Curran and the West’s 500 W Monroe (above, close to the trains) with Brad Despot and Gary Kostecki. Both buildings have almost 400k SF blocks available. Aon recently inked Integrys, Evraz, KPMG (signed two years ago and building out now), and Edelman (extended and expanded). At the end of 2011, 500 W Monroe signed GE Capitalto an extension and expansion to almost 400k SF. So, yes, Loop leasing is going well, Steve says, but around-the-clock amenities ultimately will increase in the CBD, too. (Sometimes you just need a haircut at 3am.)
Steve and Jill traveled to New Zealand in December to visit Julia, who’s studying there. He claims no regrets about bungee jumpingin Queenstown—more power to you, Steve. The family also kayaked and did a five-day hike along the Milford Track, where parts of The Lord of the Rings were filmed. No word on whether their fellowship gave up the ring.

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