A law practice’s prepared relocate to a 50-story Loop office tower continues a market pattern of minimized office sizes.
Arnstein & Lehr prepares to move next year to about 65,000 square feet at 161 N. Clark St., said Managing Partner Michael Gesas. Arnstein & Lehr currently rents about 100,000 square feet at 120 S. Riverside Plaza in the West Loop, the firm’s house because 1990, Gesas stated.
Most of the space Arnstein is taking at 161 N. Clark will be subleased from Polsinelli. That law practice plans to relocate February to a 53-story firm tower in the late phases of construction at 150 N. Riverside Plaza along the Chicago River.
Arnstein & Lehr is following a law market pattern of cutting costs by lowering real estate. Lots of firms are moving toward smaller specific workplaces and removing libraries and records that can now be saved electronically.
” We chose to make the relocation since we’re in area that, for the purposes of our company, is old-fashioned,” Gesas said. “The plus is we will not have the large equity partner workplaces that we have here (at 120 S. Riverside).
” My firm is like a castle. It’s ludicrous.”
About 60,000 square feet will be subleased from Polsinelli on the 42nd, 43rd and 46th floorings. Arnstein & Lehr also will rent about 5,000 square feet straight from the property owner on the 13th floor for the company’s administrative offices, Gesas stated.
161 N. Clark is owned by an endeavor of CBRE Global Investors, which bought it in on behalf of a group of South Korean financiers for about $331.3 million in October 2013. The tower is about 96 percent rented, according to property data provider CoStar Group.
The Polsinelli lease that Arnstein & Lehr is presuming runs till October 2027, Gesas stated.
Arnstein & Lehr was represented in the thing by Expense Rogers, a managing director at Jones Lang LaSalle.
Polsinelli is among a number of firms moving their Chicago offices to smaller areas in towers now under construction. Others consist of McDermott Will & Emery, DLA Piper and Hinshaw & Culbertson.
Other firms are switching from one existing building to another to upgrade their firms in less total area, such as Seyfarth Shaw’s offer to move to Willis Tower from the Castle.
General downtown office openings reached a 15-year low during the 2nd quarter, however pending moves by tenants from existing structures to new building and construction are expected to drive up job in the next number of years.
Founded in 1893, Arnstein & Lehr has about 90 attorneys in the Chicago office and about 60 in Florida, where it has workplaces in Miami, Fort Lauderdale, West Palm Beach and Boca Raton, Gesas said. The company also has a small Springfield workplace that its Chicago attorneys use when taking a trip to the state capital.
Arnstein & Lehr plans to complete the relocation from the West Loop by next April, Gesas stated.
Aside from some small cosmetic modifications such as new carpet and paint, the Polsinelli space is furnished and move-in prepared, Gesas said. Workplaces are 225 square feet for partners and 150 for partners.
Its existing area has partner workplaces from 235 to 310 square feet and associate firms of 150 feet, the firm said. Regardless of the general decline in space, the new firm consists of space for new hires, Gesas said.