A law firm’s prepared transfer to a 50-story Loop office tower continues a market trend of reduced office sizes.
Arnstein & Lehr plans to move next year to about 65,000 square feet at 161 N. Clark St., said Handling Partner Michael Gesas. Arnstein & Lehr currently leases about 100,000 square feet at 120 S. Riverside Plaza in the West Loop, the firm’s house considering that 1990, Gesas stated.
Most of the area Arnstein is taking at 161 N. Clark will be subleased from Polsinelli. That law practice prepares to move in February to a 53-story workplace tower in the late phases of building and construction at 150 N. Riverside Plaza along the Chicago River.
Arnstein & Lehr is following a law market trend of cutting costs by decreasing realty. Numerous firms are moving toward smaller sized specific workplaces and eliminating libraries and records that can now be saved digitally.
” We chose to make the move due to the fact that we’re in area that, for the functions of our company, is antiquated,” Gesas stated. “The plus is we won’t have the large equity partner offices that we have here (at 120 S. Riverside).
” My workplace is like a castle. It’s absurd.”
About 60,000 square feet will be subleased from Polsinelli on the 42nd, 43rd and 46th floors. Arnstein & Lehr also will lease about 5,000 square feet directly from the proprietor on the 13th floor for the firm’s administrative firms, Gesas said.
161 N. Clark is owned by a venture of CBRE Global Investors, which bought it in on behalf of a group of South Korean investors for about $331.3 million in October 2013. The tower has to do with 96 percent leased, according to property data provider CoStar Group.
The Polsinelli lease that Arnstein & Lehr is assuming runs up until October 2027, Gesas stated.
Arnstein & Lehr was represented in the offer by Bill Rogers, a handling director at Jones Lang LaSalle.
Polsinelli is amongst several firms moving their Chicago workplaces to smaller spaces in towers now under construction. Others consist of McDermott Will & Emery, DLA Piper and Hinshaw & Culbertson.
Other companies are changing from one existing structure to another to redesign their firms in less overall space, such as Seyfarth Shaw’s offer to relocate to Willis Tower from the Citadel Center.
General downtown office vacancy reached a 15-year low during the second quarter, but pending relocations by tenants from existing structures to new building and construction are expected to drive up vacancy in the next few years.
Founded in 1893, Arnstein & Lehr has about 90 attorneys in the Chicago workplace and about 60 in Florida, where it has offices in Miami, Fort Lauderdale, West Palm Beach and Boca Raton, Gesas said. The company likewise has a little 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 minor cosmetic changes such as brand-new carpet and paint, the Polsinelli space is supplied and move-in prepared, Gesas said. Workplaces are 225 square feet for partners and 150 for associates.
Its present area has partner offices from 235 to 310 square feet and associate offices of 150 feet, the company stated. Regardless of the overall decline in space, the brand-new workplace includes space for new hires, Gesas said.