I just finished up having a conversation with Howard Ecker regarding the Chicago and New York City office markets. Always one to offer a unique perspective, Howard posed an interesting question. He challenged me to name an office property in Chicago that offers the same cache as New York City’s trophy buildings. I have to admit I struggled with this. New York has a hand full of office properties that are over thirty years old and nevertheless, even in soft markets demand three figure rents. Buildings like 9 West 57th, the General Motors Building and Lever House offer tenants a certain “it” factor that I am not sure can be found in Chicago. Keep in mind this is not an architectural competition. Architecturally Chicago has some of the most iconic buildings in the world. This unique situation is based on the ability of an office building to garner top of the market rents in a soft market and a company’s strong desire to be located in a building, not because of cost and efficiency, but rather because the property offers a cache and exclusivity that cannot be found elsewhere.
It is difficult to name a building in Chicago that fits this description. The first one that comes to mind is Willis Tower, however from a pure image standpoint, I do not think Willis offers tenants the same cache as New York’s Lever House or Seagram Building and the building certainly does not demand top of the market rents in any market. Then there is the Wrigley Building. Arguably, one of Chicago’s most famous buildings, this iconic property currently sits close to 60% vacant with rents far below market.
I am really at a loss to name an office building and need your help. If you had to name an office property in Chicago that can be considered a trophy, meaning the property can garner top of the market rents in a soft market and companies desire to be located in the building, not because of cost and efficiency, but rather because the property offers a cache and exclusivity that cannot be found elsewhere, which one would it be? Please send in your comments.
