January 2024
AmTrust RE's $100 million capital improvement plan for its Chicago portfolio is paying off as three tenants, including the anchor tenant, have renewed their leases at 33 N. Dearborn St.
Law firm Heyl, Royster, Voelker & Allen P.C. signed a 10-year lease for 13,000 square feet and the nonprofit KIPP Foundation signed a six-year lease for 6,600 square feet during the fourth quarter of 2023. Law firm Corboy & Demetrio, which renewed its lease in the third quarter, is the anchor tenant with 30,000 square feet.
The 330,000-square-foot building, which includes 22,000 square feet of coworking space, is one of several downtown office buildings undergoing renovations by AmTrust.
“We have a large Chicago portfolio with six buildings that are experiencing good leasing momentum, both in terms of new leases and renewals,” Patrick Kearney, managing director of AmTrust, told the Chicago Business Journal. “A reduction in supply tied to adaptive reuse will also help create tailwinds for the market over the next several years.”
Upgrades are ongoing but will include:
Renovating and increasing the size of the fourth-floor conference center.
Creating an outdoor tenant roof deck, adjacent to the fourth-floor conference center.
An expanded bike room.
New ground-floor retail offerings.
Multiple new spec suites.
Revamped corridors and restrooms.
As more remote employees return to the office, Kearney said occupancy rates for commercial office buildings should increase this year.
“We expect improved office demand in 2024 as a variety of tenants begin making long-term space decisions after having been noncommittal since early in the pandemic,” he said. “And as companies and employees continue to return to work in response to a realization of improved productivity and culture related to being in the office, Chicago’s Central Business District will continue to build momentum.”
AmTrust’s Chicago portfolio consists of 5 million square feet and includes properties at 111 E. Wacker Drive and 233 N. Michigan Ave.
David Knight, Ethan Braham and Luke Wuchenich with Advocate Commercial Real Estate Advisors represented Heyl, Royster, Voelker & Allen and KIPP Foundation on their lease transactions.