Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of July 30.
- Google-owned Motorola Mobility announced it will move its headquarters to the Merchandise Mart from suburban Libertyville. Motorola Mobility will invest $300 million in the move, which includes relocating all 3,000 jobs to downtown Chicago in summer 2013. The 15-year lease for 572,000 square feet at the Merchandise Mart is the largest new downtown lease in the past seven years. Google’s plan to move Motorola Mobility from the suburbs to Chicago’s largest office building cements River North as the center of a tech scene that has been gathering momentum for a decade.
- The property management team at the Merchandise Mart must now reshuffle tenants and showrooms to make room for Motorola Mobility’s more than half million-square-foot lease. Debt collection firm Harris & Harris signed a lease at 111 W. Jackson Blvd. for 68,000 square feet and terminated its lease at the Mart.
- Sales of downtown Chicago office buildings are on pace to their highest level since 2007. Investors purchased 11 office buildings for nearly $1.5 billion in the first six months of 2012, putting sales on track to top last year’s total of 15 towers sold. Leasing momentum downtown, low interest rates and investors’ willingness to take more risks are among the fundamentals that have boosted the investment market.
- Chicago Mayor Rahm Emanuel released the Annual Financial Analysis report this week, which found that Chicago’s budget deficit is half of what it was one year ago. Much of the city’s financial improvement is due to a projected rise in revenue.
What headlines caught your attention this week? Leave us a comment and let us know.