MB Real Estate Executive Vice President/Managing Director Mark Buth and Vice President Kathleen Bertrand have completed more than 365,000 square feet in leases valued at more than $100 million at Chicago’s Michigan Plaza. Located at 205-225 N. Michigan Ave. in Chicago’s East Loop, 190,000 square feet of the transactions closed last year represented new lease deals.
With a positive absorption of 50,000 square feet in the East Loop submarket as of year-end 2012, which includes more than 23 million square feet of product, the Michigan Plaza leasing team outperformed peers in the submarket with more than 140,000 square feet of Michigan Plaza’s positive absorption resulting from tenants new to the East Loop submarket.
“It was an exciting year for us at Michigan Plaza having completed such a large number of transactions, several of which brought companies to the East Loop from neighboring submarkets,” Bertrand said.
Recent relocations to the 1.9 million-square-foot property include a 19,000-square-foot lease to Corbett Healthcare relocating from 111 E. Chicago; a 51,000-square-foot lease to Energy BBDO from Chicago’s Wrigley Building where it had been headquartered since 1932; a 15,000-square-foot lease to TPN Inc. which relocated from 500 N. Michigan Ave.; and a 15,000-square-foot lease to Resolutions Media relocating from 314 W. Superior. Energy BBDO, TPN Inc., Corbett Healthcare and Resolutions Media are all members of Omnicom Group Inc. a global advertising and marketing communications services company with locations around the world.
“We spent several years laying the groundwork to make Michigan Plaza Chicago’s hub for Omnicom through creative asset positioning,” said MB Real Estate’s Buth. “Omnicom and its affiliated agencies have now leased a total of 212,000 square feet at 225 N. Michigan making them the property’s second largest tenant.”
Buth and Bertrand also focused on a program to increase the asset’s value by extending existing lease terms. Lease extensions in 2012 included a 75,000-square-foot lease extension for Cramer Krasselt and a 50,000-square-foot lease extension for Gannett Inc. The team also successfully re-leased former Unilever space that would have rolled over in 2013 to new and existing tenants.
“The continued success of Michigan Plaza is a direct reflection of ownership’s commitment to the building and its occupants,” Buth said.
MB Real Estate is currently overseeing the completion of a new fitness and conference center for the property as well. The new amenities are expected to be complete and available to tenants next month.
MB Real Estate leases and manages Michigan Plaza on behalf of ownership and has represented the property since 2005.