A law practice’s planned move to a 50-story Loop workplace tower continues an industry trend of minimized workplace sizes.
Arnstein & Lehr prepares to move next year to about 65,000 square feet at 161 N. Clark St., said Handling Partner Michael Gesas. Arnstein & Lehr currently leases about 100,000 square feet at 120 S. Riverside Plaza in the West Loop, the company’s home since 1990, Gesas stated.
Most of the space Arnstein is taking at 161 N. Clark will be subleased from Polsinelli. That law practice prepares to relocate February to a 53-story workplace tower in the late stages of building at 150 N. Riverside Plaza along the Chicago River.
Arnstein & Lehr is following a law market pattern of cutting expenses by minimizing realty. Numerous companies are approaching smaller sized specific firms and eliminating libraries and records that can now be kept electronically.
” We chose to make the move due to the fact that we remain in space that, for the purposes of our firm, is old,” Gesas said. “The plus is we won’t have the large equity partner workplaces that we have here (at 120 S. Riverside).
” My workplace is like a castle. It’s ludicrous.”
About 60,000 square feet will be subleased from Polsinelli on the 42nd, 43rd and 46th floors. Arnstein & Lehr likewise will rent about 5,000 square feet directly from the proprietor on the 13th floor for the company’s management firms, Gesas said.
161 N. Clark is owned by an endeavor 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 leased, according to property data service provider CoStar Group.
The Polsinelli lease that Arnstein & Lehr is assuming runs until October 2027, Gesas said.
Arnstein & Lehr was represented in the deal by Costs Rogers, a handling director at Jones Lang LaSalle.
Polsinelli is amongst a number of companies moving their Chicago workplaces to smaller areas in towers now under construction. Others include McDermott Will & Emery, DLA Piper and Hinshaw & Culbertson.
Other firms are changing from one existing building to another to revamp their offices in less total area, such as Seyfarth Shaw’s offer to move to Willis Tower from the Castle.
Total downtown firm job reached a 15-year low during the 2nd quarter, however pending relocations by renters from existing structures to new building are anticipated to drive up vacancy in the next couple of years.
Founded in 1893, Arnstein & Lehr has about 90 legal representatives in the Chicago office and about 60 in Florida, where it has workplaces in Miami, Fort Lauderdale, West Palm Beach and Boca Raton, Gesas stated. The company also has a small Springfield firm that its Chicago attorneys use when taking a trip to the state capital.
Arnstein & Lehr prepares to finish the relocation from the West Loop by next April, Gesas stated.
Aside from some minor cosmetic modifications such as brand-new carpet and paint, the Polsinelli area is provided and move-in prepared, Gesas stated. Firms are 225 square feet for partners and 150 for partners.
Its present space has partner offices from 235 to 310 square feet and associate workplaces of 150 feet, the firm stated. Despite the total decline in space, the brand-new office consists of room for new hires, Gesas said.