What is left of Citadel’s Chicago employees are leaving the 37-story tower at 131 S. Dearborn St. and heading just a few blocks away.

Amid employee retention challenges and the relocation of much of its business to other states, the hedge fund giant is moving its Chicago footprint to 50K SF in River North, away from the Citadel Center, Bloomberg reported.

The company's founder and CEO, Ken Griffin, cited Chicago’s high taxes and crime as key reasons behind the firm's pullback from the city, saying employee retention at its former headquarters became difficult. As Citadel scaled back its Chicago presence, the city lost several high-paying jobs and corporate donations, including a $125M gift to the Museum of Science and Industry.

In 2020, Citadel occupied 500K SF in the 1.5M SF mixed-use tower. Five years later, only about 200 of its former 1,100 Chicago employees remain in the city, with many relocating to Miami or New York.

Citadel relocated its headquarters to Miami in 2022. The firm is planning a 54-story tower that is expected to break ground next year. It will include 1.3M SF of office space and a 212-key hotel. Until construction is complete, Citadel is leasing 90K SF in Brickell, where 400 workers have already relocated.

Finance roles in Illinois have taken a tumble in recent years, with the industry losing thousands of jobs since Citadel began pulling back from Chicago. The sector's workforce has fallen 2.7% over the last three years, contributing to the city's 18.7% office vacancy rate. Citadel Center, the firm's former headquarters, is only 56% leased and has been listed for sale. Its largest tenant is JPMorgan Chase, which expanded its footprint to 321K SF in April while its office undergoes renovations.

Citadel, Caterpillar and Boeing vacated the city during the second quarter of 2022. Tyson Foods followed soon after.

Against that backdrop, Chicago Mayor Brandon Johnson is pushing for a $33-per-employee-per-month tax on businesses with 500 or more workers as the city grapples with a $1.15B budget shortfall. The city council, which has until Dec. 30 to agree on Chicago’s 2026 spending plan, is pushing back on the tax, which critics dubbed a “job killer.”