Surprisingly, Blue Ops, a company that helps with mergers and acquisitions, is going to make its Chicago office three times bigger. This is unusual because many companies are actually making their offices smaller or leaving them altogether since more people are working from home now.
Blue Ops will now have about 28,000 square feet of space at 200 South Michigan Avenue, which is a big jump from where they are now at 20 South Clark Street. This move stands out because the office market in Chicago has a lot of space right now, more than 25 percent for the first time, according to CBRE.
Contrasting Trends in the Market
Blue Ops’ decision to lease more office space goes against what most companies in Chicago are doing. Many are shrinking their offices because more people are working from home, causing a lot of empty offices in the city.
The building where Blue Ops is moving, 200 South Michigan Avenue, has also lost tenants since it was bought by Stanton Road Capital from California in 2019. Its occupancy rate dropped from 80 to 67 percent.
This move by Blue Ops shows something different from what’s happening all around. It’s tough for Class B properties, like 200 South Michigan Avenue, to keep their offices full, especially when companies prefer modern, fancy offices with lots of extras to get people to come back to work.
Wider Impact on Chicago’s Office Area
Even though Chicago’s office market has challenges, Blue Ops expanding could mean things might change, or at least not be as bad as people think.
Blue Ops is getting bigger and hiring more people in Chicago because they have more clients there. This suggests that some industries or businesses still want office space.
This move might help some struggling office buildings like the one Blue Ops is leaving at 20 South Clark Street. It also gives an example of what’s happening with Winston & Strawn, a law firm that’s making its office smaller.
An Alternate View on Demand for Office Space
Blue Ops growth in Chicago’s office market shows there’s more to the story than just everyone leaving offices because of the pandemic.
It’s a sign that while many companies are downsizing and letting people work from home, some still need more space because their businesses are growing or they need to meet with clients.
This difference gives a bit of hope and a plan for other office buildings and owners to deal with the changes after the pandemic. It shows how important it is to understand what tenants need and how their businesses are growing to keep them and attract new ones in a tough market.
