Citigroup among new tenants planning move to Schaumburg Corporate Center
Global banking firm Citigroup will occupy 49,400 square feet across two floors at the Schaumburg Corporate Center, leading the way among recent successes high-end office properties in the village have had in attracting new tenants in the post-pandemic market.
The three-building, million-square foot property at the corner of Meacham and Higgins roads, south of Woodfield Mall, has signed 89,000 square feet of new leases in recent months, as well as 65,000 square feet of renewals.
Citigroup's relocation from a significantly larger space in Elk Grove Village demonstrates a shift in the market, with firms downsizing to higher quality spaces with amenities.
"These leases are indicative of the broader trend of companies moving to fully amenitized, trophy buildings in desirable suburbs," said Michael Klein, principal of Schaumburg Corporate Center owner Glenstar Properties. "Across our office portfolio, we are focused on creating the type of new, modern spaces that are in demand by companies as they return to the office and want as many employees as possible to embrace the move."
Five years ago, Glenstar finished a $30 million renovation of the campus that included updating a 17,000-square-foot sunlit atrium where live music is hosted once a week. The campus recently added a private dog park for tenants' employees - the first of its kind in the region.
Citigroup is expected to move in just after the holidays. Before then, a still undisclosed data analytics company will move 125 employees to a 24,700-square-foot space in the same building at 1515 E. Woodfield Road.
Meanwhile, real estate services firm Jones Lang LaSalle recently leased 68,382 square feet of space at the nearby 150-200 N. Martingale Road property to companies including Avalon Risk Management, AVI-SPL, Selig Sealing Products, Sky Auto Protection and Aerotek. Most are new to Schaumburg. AVI-SPL and Aerotek are relocating from elsewhere in the village.
"It's good news for Schaumburg," village Economic Development Director Matt Frank said of the recent interest in Class A office buildings. "Schaumburg continues to sell even in these times."
Frank earlier called the office market the biggest challenge among Schaumburg's otherwise strongly recovering economy.
Including the recent announcement of Zurich North America marketing nearly half its iconic headquarters building for lease by others, all recent interest has been on the fresher, high-quality Class A properties.
Frank said it can still be a tough decision for the owner of an older, less amenitized Class B building to invest in an upgrade as opposed to seeking a residential conversion or other type of repurposing.
"You have to make sure the demand is there to get a return on your investment," he said.