CHICAGO | 725 W Randolph | 700 FT | 41 FLOORS

[marothisu]

Originally Posted by SamInTheLoop

They did decide to put their new NY hq in a super-traditional office area in Midtown East, that may or may not be a clue.

They did, however, put 300K+ sq ft of office space next to Hudson Yards about 7 years ago, though one of those floors (75K to 100K sq ft) was put up for sub lease during the pandemic. But they still have something like 250K sq ft there with 1800-2000 employees there. This is in the same building as Amazon. It's mainly tech workers there for Chase. Chase has hired tons of tech workers in Chicago as well as NYC, Dallas area, etc in the last small handful of years so being in Fulton Market as they try and attract top talent fits in with an image of Fulton Market/West Loop way more than The Loop. In Chicago, an increasing percentage of the workforce these days is tech for JPMC.

No idea if they'll take up 725 W Randolph - but don't count it out. I have to wonder why Crains seems to single them out though other than once upon a time touring some sites in the area. It could easily be some other company for all we know, though. I could be wrong but something tells me they aren't going to build 1 million square feet of office space entirely on spec.

[Briguy]

Originally Posted by marothisu

They did, however, put 300K+ sq ft of office space next to Hudson Yards about 7 years ago, though one of those floors (75K to 100K sq ft) was put up for sub lease during the pandemic. But they still have something like 250K sq ft there with 1800-2000 employees there. This is in the same building as Amazon. It's mainly tech workers there for Chase. Chase has hired tons of tech workers in Chicago as well as NYC, Dallas area, etc in the last small handful of years so being in Fulton Market as they try and attract top talent fits in with an image of Fulton Market/West Loop way more than The Loop. In Chicago, an increasing percentage of the workforce these days is tech for JPMC.

No idea if they'll take up 725 W Randolph - but don't count it out. I have to wonder why Crains seems to single them out though other than once upon a time touring some sites in the area. It could easily be some other company for all we know, though. I could be wrong but something tells me they aren't going to build 1 million square feet of office space entirely on spec.

Although 167 n green was spec and is now 100% leased. 700k sq ft, and opened March 2020 to boot.

[SamInTheLoop]

Originally Posted by marothisu

They did, however, put 300K+ sq ft of office space next to Hudson Yards about 7 years ago, though one of those floors (75K to 100K sq ft) was put up for sub lease during the pandemic. But they still have something like 250K sq ft there with 1800-2000 employees there. This is in the same building as Amazon. It's mainly tech workers there for Chase. Chase has hired tons of tech workers in Chicago as well as NYC, Dallas area, etc in the last small handful of years so being in Fulton Market as they try and attract top talent fits in with an image of Fulton Market/West Loop way more than The Loop. In Chicago, an increasing percentage of the workforce these days is tech for JPMC.

No idea if they'll take up 725 W Randolph - but don't count it out. I have to wonder why Crains seems to single them out though other than once upon a time touring some sites in the area. It could easily be some other company for all we know, though. I could be wrong but something tells me they aren't going to build 1 million square feet of office space entirely on spec.

Of course there are in increasing # of tech employees in Chicago, however if you are to choose which this potential new tower this would be more like in terms of overall usage/types of employees/functions etc, also overall scale, I think it's more than fair to assume it would be more like 270 Park and less like Hudson Yards - far from a perfect comparison, just which would it more resemble.

[SamInTheLoop]

Also, guys, keep in mind - not only does Related (someone please correct if I'm wrong here!) not have, I believe, any type of large scale office development track record in Chicago, as they've been almost pure residential locally.......it's......Related (what is everyone always complaining about them taking forever on a lot of their major local stuff?!).

Also, at the end of the day, Chase may not even decide to anchor a new tower at all. Seems like they want to, and would be nice if they do, but it's possible they don't.

[twister244]

Originally Posted by SamInTheLoop

Also, guys, keep in mind - not only does Related (someone please correct if I'm wrong here!) not have, I believe, any type of large scale office development track record in Chicago, as they've been almost pure residential locally.......it's......Related (what is everyone always complaining about them taking forever on a lot of their major local stuff?!).

Also, at the end of the day, Chase may not even decide to anchor a new tower at all. Seems like they want to, and would be nice if they do, but it's possible they don't.

Good points.

For all we know, maybe Chase is shopping around and soliciting some developers/architects to see what they may want - IF - they decide to move out of their existing tower. I personally would love to see something fun and shiny west of the Kennedy to bust out a new pillar of the skyline, but economics are what drives everything at the end of the day. Still though - If we are getting 400-600 construction/proposals in the West Loop, nothing to stop the big guns from planting a trophy tower somewhere.

[UrbanDweller98]

As sorry as Related Midwest has been when it comes to timetables for breaking ground on their big projects, they never have dull designs. Even the dumbed down version of 400 LSD with its terracotta removed has a more intriguing design than most recent towers.

[marothisu]

Originally Posted by Briguy

Although 167 n green was spec and is now 100% leased. 700k sq ft, and opened March 2020 to boot.

True. That's pretty insane..

[AlpacaObsessor]

Originally Posted by marothisu

I could be wrong but something tells me they aren't going to build 1 million square feet of office space entirely on spec.

Originally Posted by Briguy

Although 167 n green was spec and is now 100% leased. 700k sq ft, and opened March 2020 to boot.

How many office buildings have broken ground since the pandemic completely on spec though? Only one that comes to mind is 345 Morgan, which was significantly smaller at 200K SF.

That's not to mention that the environment's gotten a lot tougher since then, now that equity providers and lenders are underwriting with the baseline assumption that a recessions right around the corner. It seems like every week they're re-adjusting risk profiles and asking to see return metrics with a good amount of padding to protect against slower than expected lease-up, stubbornly high interest rates by the time it comes to refinance, and some amount of cap rate expansion at sale.

Notching a big pre-lease clears away a lot of uncertainty for investors though, which is why I think it's probably the most vital milestone for an office developer right now more than ever.

[Zapatan]

If they're transferring unused rights I'm assuming the original project won't shrink.

I'm also assuming the new mystery tower would be well above 500 feet.

I hope they're both built. The loop is on fire with 4-600+ foot proposals.

[r18tdi]

Interesting. I did hear from one of my CRE contacts that Chase kicked the tires at The 78 a few years back and passed, so they've at least been in contact with Related Midwest about a new HQ for some time.

[marothisu]

Originally Posted by Zapatan

If they're transferring unused rights I'm assuming the original project won't shrink.

I'm also assuming the new mystery tower would be well above 500 feet.

I hope they're both built. The loop is on fire with 4-600+ foot proposals.

Yes. The article states it could be 1 million sq ft of office. My other guess is that it could be something like 400k sq ft for a tech office but not moving everyone. But again - sounds like pure speculation.

[Vlajos]

I hope Chase stays in the Loop. We don't need to lose more large office users in the heart of the city.

[Chi-Sky21]

Originally Posted by marothisu

Haymarket should definitely stay

Facadectomy

[r18tdi]

Originally Posted by Vlajos

I hope Chase stays in the Loop. We don't need to lose more large office users in the heart of the city.

I say let them go, and convert chase tower into micro rentals!

[Randomguy34]

Fulton Market now has it's first 700 footer!!

725 W. Randolph St.

725 W. Randolph is a proposed 700-foot tall, 41-story commercial building comprising approximately 931,000 square feet of office space, 17,000 square feet of retail/food and beverage space, a 48,000 square foot fitness club and 260 automobile parking spaces. The project will provide approximately 11,500 square feet of public open space along West Randolph Street and West Washington Boulevard and approximately 40,000 square feet of outdoor amenity spaces and terraces for the tenants located on floors 4, 8, 14, 17, 20 and 26. The building is primarily proposed to be constructed with a vision glass and aluminum window system with metal fins and frames.

https://www.chicago.gov/city/en/dept...n-meeting.html

[mh777]

Originally Posted by Randomguy34

Fulton Market now has it's first 700 footer!!

725 W. Randolph St.


https://www.chicago.gov/city/en/dept...n-meeting.html

Isn't that the speculated JPM Chase tower? I also noticed the residential units in the original proposal have been completely dropped.

[rgarri4]

Awesome! I wonder if renderings will leak prior to the meeting.

[Toasty Joe]

Originally Posted by rgarri4

Awesome! I wonder if renderings will leak prior to the meeting.

The Related site for 725 W Randolph looks updated?

[twister244]

Originally Posted by mh777

Isn't that the speculated JPM Chase tower? I also noticed the residential units in the original proposal have been completely dropped.

Good observation, although I would hope that if this was the rumored Chase Tower.... It would be higher than 700 feet. Also, that updated prelim rendering on the site looks - Bleh to me.

I'm going to reserve judgement until more details emerge. Still exciting to see a 700 footer though on the West side of the Kennedy.

[mh777]

Originally Posted by Toasty Joe

The Related site for 725 W Randolph looks updated?

I wouldn't think that's current as the linked website page still states there will be rental units, and the CoD agenda description only mentions it comprising offices & a fitness club. I can't imagine they'd forget to remove that blurb if they took the time to update the rendering, but who knows I guess.