Renewable energy firm Invenergy is nearly doubling the size of its Chicago headquarters, adding to a recent run of office expansions in the city after a trend of corporate pullbacks in recent years.
Invenergy has expanded its space after a burst of hiring and expansion in recent years, the company confirmed to CoStar News on Tuesday.
The expansion brings Invenergy’s total space to about 180,000 square feet within the 40-story tower at 1 S. Wacker Drive in the Loop business district, according to people familiar with the deal.
The firm currently leases 94,500 square feet in the nearly 1.2 million-square-foot tower, which was almost 30% vacant before the expansion, according to CoStar data. Invenergy already is the largest tenant in the building.
The glassy, Helmut Jahn-designed office tower is owned by 601W, which bought it for $310 million in late 2018.
Invenergy’s expansion is the opposite of what most companies have done in Chicago and throughout the country since the onset of COVID-19, which has led to hybrid and remote work schedules as well as reduced usage of office buildings.
But there have been a few recent examples in Chicago of companies adding space and looking to grow.
Another renewable energy firm, Germany-based RWE, which nearly doubled its space at 353 N. Clark St. Kansas City, Missouri-based insurance brokerage Lockton, also recently completed a smaller expansion at 500 W. Monroe St.
Other companies that have recently expanded in Chicago include SpotHero, Total Quality Logistics and Analytics8.
Invenergy is owned and led by Chicago businessman Michael Polsky.
Invenergy said in a statement that its expansion comes after the company has added 1,300 new employees worldwide over the past five years. A spokesman said the company now has 2,500 total employees, including 900 in the Chicago headquarters.
Blackstone Group-backed Invenergy has more than 200 clean energy projects across four continents, Invenergy said in the statement.
“As we continue to expand our operations throughout the country and across the globe, we need additional space to accommodate new members of our world class team,” Jim Murphy, Invenergy’s president and corporate business leader, said in the statement. “The expansion of our Chicago headquarters reflects our rapid growth and our ambitious plans for Invenergy’s future. We look forward to the many ways our expanded office will support our team as we continue building innovative solutions for a clean energy future.”
New York-based 601W, whose other Chicago investments include the Old Post Office and Aon Center, declined to comment to CoStar News about the Invenergy lease.
Invenergy’s deal is expected to include rights for further expansion at 1 S. Wacker.
For the Record
The tenant was represented by CBRE brokers Bill Sheehy and Brad Serot. The landlord was represented by Telos Group brokers Nikki Kern and J.D. Parcheta.