Mesirow has extended its headquarters lease through 2036 in a deal that allows the financial services firm to reduce its space in the 47-story tower along the Chicago River.
The company this week announced a 10-year extension of a lease at 353 N. Clark St. that had been set to expire at the end of 2026.
As part of the deal, the company said in an email to CoStar News, it will reduce its Chicago space to about 110,000 square feet from about 165,000 previously.
Mesirow’s deal continues a trend of companies in Chicago and other cities reducing their office footprint as leases expire, often in relocation deals. Companies planning to slash space in Chicago relocations include insurance and financial services firm Prudential, ad agency Havas, online deals company Groupon and law firm Neal, Gerber & Eisenberg.
Mesirow has occupied the tower, which it helped develop, since it opened in 2009. It has been owned by Heitman since December 2014, when the Chicago investor paid $715 million.
In striking the new deal, Heitman minimized what could have been a bigger hit if Mesirow relocated. Heitman already is bracing for the expected move-out of Ventas’ approximately 50,000-square-foot headquarters to a nearby tower. Last year, 353 N. Clark landed a rare expansion when German renewable energy firm RWE opted to stay and nearly double its space to 56,949 square feet.
Mesirow’s extension, previously reported by Crain’s Chicago Business, comes as newer, higher-end office towers along the river and in the expanding Fulton Market district still outperform an overall sluggish leasing market.
"We are pleased to be staying in our longtime headquarters and are excited about how our renovated spaces will enhance our time in the office and deepen our reputation as an employer of choice in Chicago,” Mesirow CEO Natalie Brown said in a statement.
Mesirow’s reduction in space comes despite a headcount increase of 7% over the past five years, the company said in the email, with hiring expected to continue this year.
The firm, founded in 1937, has almost 300 of its 500-plus global employees based in the Chicago headquarters. Another 55 work out of an office in north suburban Highland Park, Illinois.
Like many companies have adopted because of the pandemic, Mesirow maintains a hybrid schedule in which workers are required to be in the office on Tuesday, Wednesday and Thursday of each week, with the option of working remotely the other two days.
As part of the lease extension, Mesirow plans renovations to its space.
For the Record
Mesirow was represented by Cushman & Wakefield brokers Ari Klein and Scott Shelbourne. Heitman was represented by CBRE brokers Seth Tuscher and Mike Kazmierczak.