Blue Owl Capital aims to expand its presence in Chicago’s downtown office market.
The New York-based investment firm, led by Doug Ostrover, has secured a sublease for more than 25,000 square feet on the 37th floor of 150 North Riverside Plaza, Crain’s reported. The firm will move from its location at 30 North LaSalle Street, where it occupies about 11,000 square feet.
The company is taking over the remaining eight years of a lease originally held by investment bank William Blair, a move that bucks a trend of companies downsizing their office space due to increasing remote working.
But it is in line with the “flight to quality” trend as Blue Owl opts for more modern work environments.
The Chicago office market is facing record-high vacancy rates. According to CBRE, 25.8 percent of the market’s office space is vacant. Vacancy is highest in older Class B buildings, while newer Class A buildings are seeing a slight decline in vacancy rates.
Blue Owl’s growth in Chicago follows a series of high-profile real estate investments, including the $950 million acquisition of Oak Street Real Estate Capital and the $200 million purchase of the Chicago Tribune Freedom Center.
Through these investments, Blue Owl was able to significantly expand its real estate holdings. The value of its portfolio grew from $12 billion to over $28 billion.
The building Blue Owl is vacating, 30 North LaSalle, is undergoing a major transformation. Developer Golub and lender Corebridge Financial are leading a $135 million redevelopment that will convert the building’s lower floors into 349 residential units, a project supported by $57 million in city tax subsidies.
— Andrew Terrell
Read more
Blue Owl Capital acquires Oak Street Real Estate in $950 million deal
Bally’s Completes Sale and Leaseback of Freedom Center
Another record quarter for office vacancy rate
