Savills represented RT Specialty in a multiyear, 83,228-square-foot relocation and expansion to 540 West Madison in the West Loop. RT Specialty is a division of Ryan Specialty Group, a rapidly growing service provider of specialty products and solutions for insurance brokers, agents, and carriers, which recently completed an initial public offering through a holding company on the New York Stock Exchange (RYAN). Ryan Specialty Group is a longtime client of Savills Vice Chairman Robert Sevim and Corporate Managing Director Adam Southard, who represented RT Specialty in its real estate process.
The fast-growing insurance brokerage has substantially increased its headcount over the past year. To accommodate its expanding workforce, RT Specialty sought a larger office space that provided contiguous floorplates, offered ample parking, a broad amenity base, and was near the major transportation hubs in the West Loop. After analyzing the marketplace, the Savills team identified a solution at 540 West Madison that offered large floorplates, abundant amenities and was located directly across from the Metra train system and Ogilvie Transportation Center. The 31-story tower has floor-to-ceiling glass windows and is virtually column-free, enabling efficient and streamlined office layouts. Each floorplate is nearly 42,000 square feet.
As part of the agreement, RT Specialty will occupy the eighth and ninth floors, increasing its footprint by 45,000 square feet. The favorable lease terms secured by Savills include expansion rights, providing RT Specialty with additional flexibility to support its growth objectives. Landlord Third Millennium Group will provide a substantial tenant improvement allowance to support capital upgrades to its space, including the ability to incorporate a staircase to connect both floors. Project management for the refurbishment will be overseen by Savills Rich Dale and Laura Schueren.
“RT Specialty Chicago has been on a rapid growth trajectory and is one of the most dynamic offices in the Ryan Specialty Group portfolio,” said Sevim. “540 West Madison is one of the premier office towers in the West Loop as the building is consistently adding to the tenant experience with ongoing enhancements that include high-quality amenities on a significant scale. The spacious floorplates and open-air setting create a seamless evolution of the RT Specialty brand that reflects the entrepreneurial and professional office environment it has cultivated since its inception.”
“As the largest submarket in Downtown Chicago, the West Loop continues to be a destination of choice for multinational corporations, financial service companies, and law firms,” said Savills Regional Research Director Anders Klein. “There are a greater number of quality options in the West Loop compared to other submarkets, as many recently constructed buildings provide more efficient floorplates and offer substantial amenities, abundant natural light, and plentiful outdoor space. While the market’s fundamentals have softened due to the pandemic, tenant demand remains relatively high, with an overall availability rate that is 180 basis points lower than the downtown market.”
540 West Madison is a LEED-EB Platinum-certified office tower. The Class A building incorporates numerous features to boost energy efficiency, including mission-critical infrastructure and a raised-floor HVAC and data distribution system. Additionally, the property offers expansive onsite parking, a roof garden, tenant lounge, concierge services, conferencing center, fitness and wellness facility, and a full-service café.