It’s official – my friends at Microsoft are moving away

Some of you may not know this, but I spent several years at Microsoft Corporation in Chicago before I moved one block down the street to work in commercial real estate.  When I was at Microsoft, there were often rumors that we were going to relocate the offices.  One day it was the Hancock Tower, the next it was the Sears Tower.  At one point, one of my colleagues mentioned something about moving into the South Loop.  Talk about early adopter – we would have been bleeding edge, a major corporation opening regional headquarters space in the South Loop, near McCormick Place (unheard of!).

As a result of all the rumors during my tenure, I didn’t give too much credibility to Microsoft Close to Moving Chicago Office, despite the fact that it was reported by Crain’s Business Journal.  However, Commercial Property News has confirmed the rumor – Microsoft Commits to Chicago Aon Center Lease.  To all of my friends and former colleagues, I wish you well on your move – although you’re leaving a great building, you’ll be taken care of at Aon, trading your fine Chicago River views for some phenomenal

My thoughts on why Microsoft moved:

  • 77 W. Wacker (The United Building) is currently doing deals in the $42-47/SF gross range; 200 E. Randolph (The AON Center) is running between $30-34/SF gross.  Despite being farther from most mass transit, including CTA and Metra trains, the lower cost is still substantial and worth trading off other amenities.
  • Prime Group Realty Trust, owners of 77 W. Wacker, may honestly not had the means to accommodate Microsoft’s growing space needs, especially given the rumor of United Airlines planned growth of 108,500 more square feet than they currently occupy (see UAL Looks to Expand Downtown HQ).
  • According to the Commercial Property News article, “Microsoft was represented by Jones Lang LaSalle’s Steve Steinmeyer and Luanne Reedy.”  What the article doesn’t mention is that the AON Center leasing is managed by Steve Smith, also of Jones Lang LaSalle.

One Response

  1. […] Center (for more details, see my post It’s official – my friends at Microsoft are moving away  As a tenant, knowing what happens here can significantly impact building vacancy and […]

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: