JLL is lowering its footprint at its Chicago headquarters by greater than 30%, becoming a member of an increasing listing of companies which can be downsizing their workplace house in response to hybrid work patterns.
The corporate is itemizing its house on the 47th and 48th flooring of the Aon Middle, a box-shaped skyscraper overlooking Millennium Park at 200 East Randolph Road, CoStar reported.
The brokerage is subleasing 61K SF of its 202K SF headquarters house within the 83-story tower, which is anchored by Aon and KPMG, who’ve 640K SF and 307K SF within the tower, respectively. The Aon Middle is the fourth-tallest constructing within the skyline of the Windy Metropolis.
“Whereas the best way we work has modified, and suppleness is right here to remain, the workplace stays central to bolster tradition, drive collaboration and innovation and allow skilled progress,” a JLL spokesperson stated in an announcement despatched to Crain’s Chicago Enterprise.
“Simply as we’re serving to purchasers with their office transformations, we’re doing the identical at our personal JLL workplaces that stay a central hub for the place our individuals work every day,” the assertion continued.
“Following an in depth evaluation and suggestions from JLL staff of how our Chicago headquarters on the Aon Middle is getting used, we recognized alternatives to optimize our workspace and convey our groups nearer collectively, which has resulted in a call to sublease a portion of our workplace house.”
In April, Peter Caruso, managing director, Brokerage, at JLL’s Chicago workplace advised GlobeSt. that the two.8M SF constructing was “barely at 50%” of occupancy.
“It’s three days every week. There’s a fairly good lunch crowd on Friday, however then it simply dies. There’s no pleased hour on Friday,” Caruso advised us in April. “There are solely a few companies open in our constructing. I can complain till I’m blue within the face for extra of them to open.”
Regardless of the additional house on the Aon Middle, Chicago’s workplace market bought a much-needed shot within the arm within the second quarter—reporting the primary web optimistic absorption after 10 consecutive quarters within the purple.
Internet absorption totaled 96K SF in Chicago, and all of this optimistic exercise concerned Class A buildings, in line with the most recent market report from Colliers. Class B and C workplace property proceed to wrestle, the report stated.
Whereas workplace availability reached a report excessive of 28% in Q2 2023, workplace emptiness decreased barely to 22%.
“It’s anticipated that availability and vacancies will proceed to rise earlier than the 12 months is out. Nevertheless, the optimistic view is that the [largest] consolidations could also be behind us,” Colliers stated.
Obtainable workplace house continues to extend in Chicago’s Central Enterprise District, with greater than 1.1M SF of further house put in the marketplace within the second quarter.
“Absorption will not be anticipated to proceed to development considerably optimistic for the rest of 2023,” Colliers’ outlook projected.
