A law office’s planned relocate to a 50-story Loop workplace tower continues an industry trend of minimized firm sizes.
Arnstein & Lehr plans to move next year to about 65,000 square feet at 161 N. Clark St., stated Handling Partner Michael Gesas. Arnstein & Lehr presently rents about 100,000 square feet at 120 S. Riverside Plaza in the West Loop, the firm’s home because 1990, Gesas stated.
Most of the area Arnstein is taking at 161 N. Clark will be subleased from Polsinelli. That law office plans to relocate February to a 53-story workplace tower in the late phases of building and construction at 150 N. Riverside Plaza along the Chicago River.
Arnstein & Lehr is following a law industry pattern of cutting expenses by reducing real estate. Many firms are moving toward smaller individual firms and removing libraries and records that can now be stored electronically.
” We decided to make the relocation since we remain in area that, for the purposes of our firm, is old,” Gesas stated. “The plus is we will not have the extra-large equity partner workplaces that we have here (at 120 S. Riverside).
” My office is like a castle. It’s absurd.”
About 60,000 square feet will be subleased from Polsinelli on the 42nd, 43rd and 46th floors. Arnstein & Lehr likewise will lease about 5,000 square feet straight from the landlord on the 13th floor for the firm’s administrative firms, Gesas said.
161 N. Clark is owned by a venture of CBRE Global Investors, which bought it in on behalf of a group of South Korean financiers for about $331.3 million in October 2013. The tower is about 96 percent rented, according to realty information supplier CoStar Group.
The Polsinelli lease that Arnstein & Lehr is assuming runs up until October 2027, Gesas said.
Arnstein & Lehr was represented in the offer by Expense Rogers, a managing director at Jones Lang LaSalle.
Polsinelli is amongst a number of firms moving their Chicago offices to smaller sized areas in towers now under construction. Others consist of McDermott Will & Emery, DLA Piper and Hinshaw & Culbertson.
Other companies are changing from one existing structure to another to upgrade their firms in less total space, such as Seyfarth Shaw’s offer to transfer to Willis Tower from the Castle Center.
General downtown workplace openings reached a 15-year low during the second quarter, but pending relocations by renters from existing structures to new building and construction are expected to drive up openings in the next few years.
Founded in 1893, Arnstein & Lehr has about 90 lawyers in the Chicago firm and about 60 in Florida, where it has firms in Miami, Fort Lauderdale, West Palm Beach and Boca Raton, Gesas stated. The company likewise has a little Springfield office that its Chicago attorneys utilize when taking a trip to the state capital.
Arnstein & Lehr plans to finish the relocation from the West Loop by next April, Gesas stated.
Aside from some small cosmetic modifications such as new carpet and paint, the Polsinelli area is provided and move-in all set, Gesas stated. Firms are 225 square feet for partners and 150 for partners.
Its existing area has partner workplaces from 235 to 310 square feet and associate firms of 150 feet, the company said. In spite of the general decline in space, the brand-new firm includes space for brand-new hires, Gesas said.