CHICAGO | Highrise Projects & Construction, v7

[SamInTheLoop]

Originally Posted by Justin_Chicago

I hope everyone here realizes CAT is only moving 100-300 positions (executive staff and some corporate functions like Finance/Treasury/Investor Relations, etc.). This is likely 2-3 floors. I am sure there are many office buildings around the Loop with this availability. The main back-office corporate function stays in Peoria. The existing McDonald's HQ and previous Kraft HQ would require a full company HQ move to fill that much space. Also, CAT currently has their Digital & Analytics department based in the Merchandise Mart.

In regards to the executive team, CAT has a new CEO. Doug Oberhelman retired last year. If ADM executives can handle the City of Chicago, I am sure CAT executives can.

Article: http://www.chicagotribune.com/busine...31-column.html

"Such moves are expected to make these old-line companies more attractive to an increasingly urban-based and culturally diverse workforce that's digitally adroit and eager to do business on a worldwide scale."

"Many of Caterpillar's senior leaders have spent many years at the firm and have been rotated throughout the business," Keith Schoonmaker, Morningstar analyst, wrote in a recent report. "Increasingly, however, the company has sought to hire people from outside of the heavy equipment industry."

ADM is exactly what came to mind when I heard of this planned relocation. I think downtown is definitely a realistic possibility for CAT (my guess is at least a 50% chance).....and, my guess is that this HQ might be 50-80k sq ft?? It's definitely a candidate for an existing Class A building, just like with the ADM relocation. If they do opt to relocate downtown, it will be just more good news for the cbd office market, where the vacancy rate is at low levels not seen for a long, long time. (as more new buildings come online, it will flatten-out, but remain very healthy for at least the next couple years)....

[LouisVanDerWright]

Is vacancy going to flatten out all that much though? I mean we are seeing Class B and C stuff (The Hyatt Centric, Oriental, etc) continue to be wiped out by conversions while job growth continues at a breakneck pace (see companies like Uptake going from 350 people to 700 in a year, that's like another CAT HQ right there). I mean Chicago has lagged the nation in terms of growth since the middle of last century at which point the office market was exploding (seeing stuff like Sears and Aon built). Granted that's a totally different job market, but people quickly forget how intense economic booms can become if sustained growth trends kick in. Seeing as how we are now in a record string of low layoffs not seen since the jobless claims number first came out around 1970, I think its a real possibility that, as you and other have speculated, this expansion may have a few more years to run. Certainly the demographic trends portend a necessary passing of the torch from Boomers to Millenials as one large generation is supplated by another and I think it's pretty clear the Millenials are voting with their feet when it comes to development trends.

Point being Chicago's central area is finally attracting businesses in high growth areas again, something it really hasn't done since the first half of the 20th century. We are used to expansions with four or five big office towers, but it is possible we could really see continued demand for long enough to get something like the Union Station Sterling Bay proposal off the ground for the first time since the early 1990's. Yes there have been fundmental shifts in the way we look at office space and the businesses that fill those spaces, but there have also quite clearly been shifts of late making central areas far more attractive than they were even just a decade ago. It will be interesting to see if we maybe get 130 Franklin or General Growth off the ground and the economy poops out, or if things keep running for a couple of years and we see both those towers and maybe a big one or two also take off.

[Notyrview]

Originally Posted by SamInTheLoop

Yeah, this is very exciting.....hopefully Georgetown comes out with their plan in the next few months.....this site has so much potential.....

Please something really sophisticated and glassy 🔥

[Justin_Chicago]

B of A could kick off new office tower downtown

Bank of America is eyeing a potential lease of more than 500,000 square feet in downtown Chicago, with a Wacker Drive development along the Chicago River believed to be a top contender to land the deal.

The bank is in talks for space in a big office tower proposed for 110 N. Wacker Drive, according to real estate sources. That's where mall owner GGP's low-slung headquarters building now stands.

But two other locations also appear to be in the running: a proposed development on Franklin Street, and the Willis Tower.

Yet Howard Hughes and Riverside face competition from New York-based firms Blackstone and Tishman Speyer Properties.

Blackstone wants to bring B of A to its 110-story Willis Tower, where it plans $500 million in upgrades. Tishman Speyer seeks an anchor tenant to build a 51-story tower on a site at 130 N. Franklin St., according to sources.

Article: http://www.chicagobusiness.com/reale...-chicago-lease

[TimeAgain]

Originally Posted by Justin_Chicago

B of A could kick off new office tower downtown

Bank of America is eyeing a potential lease of more than 500,000 square feet in downtown Chicago, with a Wacker Drive development along the Chicago River believed to be a top contender to land the deal.

The bank is in talks for space in a big office tower proposed for 110 N. Wacker Drive, according to real estate sources. That's where mall owner GGP's low-slung headquarters building now stands.

But two other locations also appear to be in the running: a proposed development on Franklin Street, and the Willis Tower.

Yet Howard Hughes and Riverside face competition from New York-based firms Blackstone and Tishman Speyer Properties.

Blackstone wants to bring B of A to its 110-story Willis Tower, where it plans $500 million in upgrades. Tishman Speyer seeks an anchor tenant to build a 51-story tower on a site at 130 N. Franklin St., according to sources.

Article: http://www.chicagobusiness.com/reale...-chicago-lease

Oh man, I hope it's 130 or 110 (especially 110).

[the urban politician]

If this launches 110, plus you add what's happening with Willis Tower, Wacker Drive will be on a serious roll.

My dream is to see B of A anchor 110 and another anchor getting 130 started

[MayorOfChicago]

Is this a net increase for BofA, or more of a consolidation? Where will they be vacating?

Nevermind, I saw it's more of a consolidation, which I assumed.

[UPChicago]

My vote goes to 130 N. Franklin

[r18tdi]

Updated h2o+ renderings over at curbed.

I'm liking GREC more and more these days (minus that Hilton garden backsplash thing on Wacker).

[the urban politician]

^ Like the new design, although I would like to see retail fronting the entire Madison side

[maru2501]

Originally Posted by Notyrview

Please something really sophisticated and glassy 🔥

please something mixed use

[rlw777]

I'm hoping BoA goes with 130 N Franklin.

Speaking of which I know GGP has a lease at 110 but now I wonder how much of an obstacle that is. I know Howard Hughes Company was a spin-off from GGP does anyone know if GGP retained controlling interest in HHC making it a subsidiary?

[munchymunch]

Originally Posted by Justin_Chicago

B of A could kick off new office tower downtown

Bank of America is eyeing a potential lease of more than 500,000 square feet in downtown Chicago, with a Wacker Drive development along the Chicago River believed to be a top contender to land the deal.

The bank is in talks for space in a big office tower proposed for 110 N. Wacker Drive, according to real estate sources. That's where mall owner GGP's low-slung headquarters building now stands.

But two other locations also appear to be in the running: a proposed development on Franklin Street, and the Willis Tower.

Yet Howard Hughes and Riverside face competition from New York-based firms Blackstone and Tishman Speyer Properties.

Blackstone wants to bring B of A to its 110-story Willis Tower, where it plans $500 million in upgrades. Tishman Speyer seeks an anchor tenant to build a 51-story tower on a site at 130 N. Franklin St., according to sources.

Article: http://www.chicagobusiness.com/reale...-chicago-lease

I wonder who is interested in the Union Station Development with Sterling Bay.

[harryc]

Jan 17


Jan 22



Jan 30

[harryc]

Jan 30
Shooting up fast




did somebody crease the blueprints ?


Nice looking neighbor

[harryc]

Jan 30

[BVictor1]

Originally Posted by munchymunch

I wonder who is interested in the Union Station Development with Sterling Bay.

Sterling Bay doesn't have the Union Station job. They were one of four developers to submit proposals.

SB were the only ones to have released renderings thus far.

We won't know who's chosen until April I think.

[SamInTheLoop]

Originally Posted by LouisVanDerWright

Is vacancy going to flatten out all that much though? I mean we are seeing Class B and C stuff (The Hyatt Centric, Oriental, etc) continue to be wiped out by conversions while job growth continues at a breakneck pace (see companies like Uptake going from 350 people to 700 in a year, that's like another CAT HQ right there). I mean Chicago has lagged the nation in terms of growth since the middle of last century at which point the office market was exploding (seeing stuff like Sears and Aon built). Granted that's a totally different job market, but people quickly forget how intense economic booms can become if sustained growth trends kick in. Seeing as how we are now in a record string of low layoffs not seen since the jobless claims number first came out around 1970, I think its a real possibility that, as you and other have speculated, this expansion may have a few more years to run. Certainly the demographic trends portend a necessary passing of the torch from Boomers to Millenials as one large generation is supplated by another and I think it's pretty clear the Millenials are voting with their feet when it comes to development trends.

Point being Chicago's central area is finally attracting businesses in high growth areas again, something it really hasn't done since the first half of the 20th century. We are used to expansions with four or five big office towers, but it is possible we could really see continued demand for long enough to get something like the Union Station Sterling Bay proposal off the ground for the first time since the early 1990's. Yes there have been fundmental shifts in the way we look at office space and the businesses that fill those spaces, but there have also quite clearly been shifts of late making central areas far more attractive than they were even just a decade ago. It will be interesting to see if we maybe get 130 Franklin or General Growth off the ground and the economy poops out, or if things keep running for a couple of years and we see both those towers and maybe a big one or two also take off.

I don't fundamentally disagree with the points you raise. With new space finally beginning to be delivered (some of it still vacant, and much of it being filled by tenants that are vacating other CBD spaces - often larger spaces), I think we've reached about the low point in vacancy this cycle. The other trend of course is that businesses continue to seek ways to use space much more efficiently. I'm actually more optimistic than most of the folks who deal with office space/investments in terms of outlook over the next couple years, as most seem to anticipate a fairly steady rise in vacancy beginning this year. I'm more of a mindset that vacancy rates will probably flatten out at cyclical lows or rise only slightly, as enough of the vacated space will be backfilled by growth in smaller firms including some tech increasingly looking at the Loop proper as well as a more expansionary professional and businesses services industry group.....

Obviously highly dependent on the macro environment/cycle, my guess (hope) is that we can get both 130 and 110 to launch this cycle, and then we probably have to wait until next cycle for further large office towers. Next cycle I'm going to be watching for a renewed push along the South end of Wacker (where that two tower proposal recently came to light).....especially if the Willis base redevelopment can energize the area......

[TimeAgain]

Originally Posted by BVictor1

Sterling Bay doesn't have the Union Station job. They were one of four developers to submit proposals.

SB were the only ones to have released renderings thus far.

We won't know who's chosen until April I think.

Regardless, they mentioned that they already had interested parties.

[BVictor1]

Originally Posted by TimeAgain

Regardless, they mentioned that they already had interested parties.

Regardless, that may or may not play into Amtrak's decision, but I'm sure they're weighing a whole lot of option$$$.