Infrastructure consulting firm AECOM is moving its Chicago office to Prudential Plaza, becoming the second tenant to commit to the two-tower complex on the eastern edge of the Loop business district since its owner unveiled plans for more than $50 million in upgrades.
AECOM said it leased about 23,000 square feet in One Prudential Plaza, the 41-story tower at 130 E. Randolph St. along Millennium Park.
In a statement, the company said the deal will consolidate Chicago-area offices and bring 432 local employees together in one space for improved collaboration. AECOM is moving out of a larger space less than two blocks away at 303 E. Wacker Drive.
“Our Chicago team has delivered some of the city’s most vital and iconic infrastructure projects and this investment solidifies our commitment to the region,” Matt Crane, regional chief executive of AECOM’s U.S. West business, said in a statement. “Pru Plaza will provide the infrastructure to build on our current momentum and enable us to hire additional talent to build the Chicago office’s legacy as the city continues to evolve.”
The engineering giant has a major presence in Chicago, where it is involved in infrastructure projects at O’Hare and Midway airports, as well as the reconstruction of an interchange at Lake Shore Drive and Interstate 55 and pedestrian bridges over Lake Shore Drive and train tracks at 41st and 43rd streets.
Dallas-based AECOM’s Chicago lease follows the national trend of companies decreasing office space as they sign new leases, but it’s the second step forward in recent months for Prudential Plaza owner Wanxiang America Real Estate.
Seeking to Lure Tenants
Wanxiang and Chicago-based Sterling Bay bought Prudential Plaza for $680 million in 2018, before the pandemic's arrival led to remote and hybrid work models, which created historically low demand for office space.
Wanxiang, the Chicago-based real estate investment arm of a Chinese auto parts maker, early this year disclosed the planned upgrades to the roughly 2.3 million-square-foot office complex as part of a negotiated extension of the commercial mortgage-backed securities loan on the property. That deal includes options to extend the maturity date on more than $385 million in debt.
The loan modification and Wanxiang’s commitment to fund improvements to amenities and leasing costs came after CoStar News first reported in December that insurer Prudential, for which the complex has been named since the 1950s, is moving its Chicago office to the 54-story tower along the Chicago River at 150 N. Riverside Plaza.
Improvements to Pru Plaza will include a redesigned 11th-floor roof deck, which will include a pickleball court, putting greens and a bar. A new walkway will link the Two Prudential tower to the roof deck, with other connected amenities to include a food and coffee bar, golf simulators, coworking space and a podcast studio.
The first lease signed after the upgrades were unveiled was architecture firm HOK’s 25,450-square-foot deal announced in May.
Wanxiang is offering naming rights and signage to try to land a large tenant, potentially for one that could fill a 114,000-square-foot hole created when the real estate technology firm recently signed a deal to leave One Prudential for a smaller space at 203 N. LaSalle St.
Lessen’s exit adds to the leasing challenge, but Wanxiang collected a large termination payment from Lessen that will help fund ongoing upgrades in the near term.
AECOM said its new space will include social meeting spaces and areas for after-hours events. It added it also plans to hold a new lecture series for students studying science, technology, engineering, art and math, or STEAM.
The company is part of the Fortune 500, with $14.4 billion in revenue in the past fiscal year.
For the Record
The tenant was represented by JLL brokers David Miller, Isabelle Montagne and James Malone. The landlord was represented by Riverside Investment & Development brokers Dan Heckman and Annie Aldrich Kwasigroch.