Insurance brokerage doubles West Loop office space

That has pushed landlords to offer generous packages of concessions like free rent and cash for office build-outs, as well as flexibility built into leases to account for post-COVID uncertainty. RT acknowledged the importance of having employees work together in person and took advantage of that leverage with its new deal, said Savills Vice Chairman Robert Sevim. “It’s a commitment to ensure that the role of the office is to amplify the power of in-person working. Their business has succeeded in so many ways from their work in person over the years,” Sevim said. “They are designing a space where people will want to come to work because it’s going to be a compelling environment.”

RT’s deal is a win for Boca Raton, Fla.-based Third Millennium Group, which has owned the nearly 1.2 million-square-foot 540 W. Madison since 2012. The building recently lost Bank of America from its rent roll as the lender formally left behind almost 140,000 square feet in the building, part of a consolidation of its downtown offices into its new namesake tower at 110 N. Wacker Drive. RSG is one of the largest single tenants at Two Prudential Plaza in the East Loop.

RT is a division of Ryan Specialty Group, the specialty insurance company that Aon founder Pat Ryan formed in 2010. RSG raised more than $1.3 billion in its initial public offering in July, when it began trading on the New York Stock Exchange for just under $24 per share. The company’s stock price closed yesterday at just more than $37.

The 44-story building is owned by San Francisco-based Spear Street Capital, which bought it for $412 million in 2019. RT is leaving behind a Monroe Street building that is 96% leased, according to real estate information company CoStar Group. The brokerage first subleased space in the building close to a decade ago and later leased directly from the building in a deal that runs through May 2026, according to CoStar data. Sevim said RT will have some of that lease term remaining in the building, but did not provide details.

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