October 07, 2015
By Ryan Ori
A rendering of the tower, at right, that John O’Donnell plans to build in the West Loop.
Navigant Consulting is in advanced negotiations to move its headquarters to a 53-story office tower under construction along the Chicago River, a deal that would fill the last large block of space available in the development.
The Chicago-based consulting firm is working to finalize a deal for about 110,000 square feet in the 1.2-million-square-foot tower Chicago developer John O’Donnell is building at 150 N. Riverside Plaza in the West Loop, according to people familiar with the deal.
If completed as expected, the Navigant deal would leave O’Donnell’s firm, Riverside Investment & Development, with only small blocks to fill before the tower is completed by early 2017.
Riverside already has signed large deals with investment firm William Blair, hotel chain Hyatt Hotels and law firm Polsinelli, as well as a top-floor lease with private equity firm Victory Park Capital Advisors.
Just north of that project, in the city’s only other office tower currently under construction, a venture of Houston-based Hines Interests has signed tenants including law firms McDermott Will & Emery and DLA Piper, baby formula maker Mead Johnson Nutrition and Chicago-based Morton Salt for its 52-story River Point development.
As those buildings fill up, causing options for brand-new space to dwindle, other developers trying to launch office towers could gain traction with anchor tenants of their own.
Chicago-based John Buck lost potential anchor Freeborn & Peters for its planned tower at 151 N. Franklin St. in the Loop when the law firm opted instead to renew its lease in the West Loop, but the developer has a commitment from another law firm, Hinshaw & Culbertson.
Riverside also is seeking office tenants for a mixed-use development it plans at Chicago Avenue and Halsted Street near Goose Island. Its partner on the project is Tribune Media, which owns the riverfront site where a shuttered printing and distribution facility stands.
In the third quarter, overall office vacancy in downtown Chicago fell below 13 percent for the first time since 2008.
Navigant would move from the CME Center, at 30 S. Wacker Drive, where it leases about 120,000 square feet. That lease expires in May 2017, according to sources.
“The firm is exploring options for a new corporate headquarters location, and is committed to Chicago,” Navigant spokeswoman Megan Maupin said in a statement.
She declined to comment on the 150 N. Riverside deal and wouldn’t say how many people work in the company’s current headquarters. In the statement, she said the company is “exploring options within a six-block radius of our current location. Any potential move will be conducted in phases, beginning in the spring of 2017.”
Ari Klein, a Chicago-based executive director at New York-based Cushman & Wakefield who represents Navigant, referred questions about the 150 N. Riverside deal to Cushman Executive Vice President Jeff Samaras, who also represents Navigant. Samaras and Drew Nieman, an executive vice president at Los Angeles-based CBRE who represents O’Donnell’s firm, did not return calls.
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