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Downtown Chicago’s Sprawling Thompson Center Redevelopment Gets Official Kickoff

Tech Giant Plans To Eventually Have Thousands of Workers in 17-Story Building
Google has begun redeveloping the former state-owned James R. Thompson Center in Chicago's Loop. (Google)
Google has begun redeveloping the former state-owned James R. Thompson Center in Chicago's Loop. (Google)
CoStar News
May 6, 2024 | 7:31 P.M.

Google leaders and public officials including Illinois Gov. J.B. Pritzker and Chicago Mayor Brandon Johnson gathered for a James R. Thompson Center groundbreaking that, though merely a ceremony for the yearslong redevelopment to come, they hope can mark a moment of transformation for a major city center in flux.

The dignitaries and the project's development team held the event after actual work began inside the spaceship-like Chicago structure last month and after work in recent weeks to move the Jean Dubuffet’s 10-ton “Monument with Standing Beast” public art from the large plaza outside the formerly state-owned office building in the heart of the Loop business district.

“As the transformation of the Thompson Center begins, I want to thank Google once again for reaffirming their commitment to Chicago and preserving this historic building while updating and modernizing this iconic space,” Pritzker said in a statement ahead of the ceremony. “The Google employees who will call this building home will be another piece in the complex, thriving puzzle of the Loop’s infrastructure and ecosystem, making our economy and our skyline stronger.”

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Google’s move to advance the Thompson Center project amid rising interest rates and high construction costs is a hopeful sign for the Loop, which was in need of a boost even before COVID-19 led to remote and hybrid work trends that have further reduced foot traffic.

Earlier this year, another major employer in the city — JPMorgan Chase, the nation’s largest bank — disclosed plans for a major renovation of its 60-story namesake tower at 10 S. Dearborn St., a short walk from the Thompson Center.

Plans by Google and JPMorgan come after other office tenants, including Bank of America and BMO Financial, have moved to new towers along the Chicago River, leaving large holes to fill in historic buildings on and around LaSalle Street.

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That has led the city to offer financial incentives to convert some outdated office buildings into apartments, many with affordable, below-market rents.

"This project brings numerous construction opportunities to our city while also preserving a vital transit hub, which reinforces our shared commitment to accessibility,” Johnson said in the statement. “And as a future home for Google, this site will undoubtedly stand as a symbol of Chicago's stature as an inclusive hub for business and technology on the global stage.”

The Thompson Center overhaul is being led by two Chicago developers — Prime Group, led by Mike Reschke, and Capri Interests, led by Quintin Primo — who had struck a deal to buy the property from the state of Illinois before Google later entered the picture.

Thompson Center work began almost two years after CoStar News first reported Google’s plans to buy and occupy the glassy, 17-story building designed by the late Helmut Jahn in June 2022. About a month later, Mountain View, California-based Google confirmed the plans for a massive new downtown Chicago office within a redeveloped structure at 100 W. Randolph St.

Google late last year provided its first look at its Thompson Center redevelopment in Chicago. (Google)

Late last year, the tech giant unveiled the first public look at the overhauled 1.2 million-square-foot building, showing the elimination of the quirky blue-and-salmon color scheme in favor of a transparent, clear-glass look that will preserve exterior views of the towering atrium through the center of the building that opened in 1985.

“For Chicago, it will bring over 1 million square feet of prime, highly optimized mixed-use space to the Loop that will change the way Chicagoans both work and enjoy life downtown,” Primo said in the statement. “For the building industry, it will serve as a national role model for other complex but potentially far-reaching redevelopment projects.”

Unique Deal

The Prime/Capri venture bought the Thompson Center for $105 million in July 2022 in an unusual deal in which Google agreed to later buy it after initial development phases were completed. On the same day, the developers also bought two nearby buildings, flipping one to the state at 115 S. LaSalle St. as part of its purchase price.

The complex deal saved the Thompson Center from the wrecking ball after the state previously marketed the property for sale as a potential demolition and development site.

As part of their work, the developers and Google agreed not to disrupt operations of several Chicago Transit Authority trains on tracks connected to the building.

By the time Google buys and eventually moves thousands of employees in, the Thompson Center is expected to be an all-electric, LEED-certified building.

“At a time when environmental stability and resource conservation are important to all of us, the most sustainable strategy is to revitalize a building that already exists,” Reschke said in the statement. “This was an innovative and distinctive structure when it was built. We are not only seizing a rare opportunity to be a responsible steward of the Thompson Center’s legacy but also propelling it forward as a world-class hub for business and technology.”

The project also is expected to include three new terraces for Google employees, new food and beverage retail and seasonal activities on the large plaza outside the Thompson Center. Those changes are being made with consultation from the architecture firm left behind by Jahn when he was struck by cars and killed while bicycling in Chicago’s suburbs in 2021.

Google has not said what will happen with its current Midwest headquarters in Chicago’s Fulton Market once the Loop project is completed.

"Google has called Chicago home for more than two decades, and we're proud to be deepening our commitment to the city and community with the Thompson Center," Karen Sauder, Google’s Chicago leader, said in the statement. "Our new office gives us a long-term presence in the Loop that will support our business needs across the Midwest and create a great environment for our employees."

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