5/29/2014
Seyfarth Shaw moving to Willis Tower from Citadel Center - News - Crain's Chicago Business
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Seyfarth Shaw moving to Willis Tower in big space cut
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By: Ryan Ori April 21, 2014
Chicago law firm Seyfarth Shaw
LLP is moving to the Willis Tower,
shedding about a third of the
space it leases in another
downtown building.
Seyfarth Shaw confirmed it is
finalizing a 15-year lease for about
200,000 square feet in the
landmark skyscraper at 233 S.
Wacker Drive. The law firm plans to
vacate about 300,000 square feet
at the Citadel Center, 131 S.
Dearborn St., its home since 2007.
The move continues a trend of law
firms, once one of the largest
users of space per employee,
slicing square footage throughout
the country to control costs. But
within the image-conscious law
industry, it is a rare instance of a
firm going from a trophy tower
completed during the last
development cycle — the 37-story
tower on Dearborn opened in
Law firm Seyfarth Shaw plans to move to the Willis Tower.
2003 — to a 41-year-old tower,
Bloomberg photo
albeit the city's tallest and perhaps
most recognizable building.
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“It's definitely an unusual move,”
said tenant broker Robert Sevim, an executive managing director in Chicago at New Yorkbased Studley Inc. who was not involved in the deal. “I can't think of one law firm that has
gone from a brand-new building to second-generation space.”
Seyfarth has a lease of more than 15 years at Citadel Center that started in 2007 but is
exercising an option to terminate the deal in 2017, according to people familiar with the
transaction. Seyfarth's broker, Melissa Copley, a managing partner in the Chicago office of
Mohr Partners Inc., declined to disclose what her client is paying to terminate the lease.
The firm will move into floors 38 and 76 to 80, according to Chicago-based U.S. Equities Realty
LLC, which represents the landlord in leasing. The higher floors will be vacated by another
law firm, Dentons, which is moving within the 110-story tower to about 144,000 square feet
of space being vacated by law firm Latham & Watkins LLP.
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Seyfarth will move within the next three years, said a spokesman for the firm.
'OPTIMAL COLLABORATION'
“Willis Tower presents a unique opportunity to align our office footprint in Chicago with the
innovative needs of our lawyers and staff,” Peter Miller, Seyfarth’s managing director, said in a
statement. “We’re excited to move into such an iconic building, and our new space will allow
us to reimagine and design state-of-the-art facilities in order to best serve our clients not just
in Chicago, but across the country and around the globe.”
Willis, which opened in 1973 as Sears Tower, will have more than 90 percent of its 3.8 million
square feet filled with the Seyfarth deal, said U.S. Equities' Mike Kazmierczak, who
represented Willis' owners along with colleague Derek Rolison. Occupancy has been boosted
by United Airlines' expansion in the building, along with several smaller deals.
Other large tenants in the building include law firm Schiff Hardin LLP, with 217,000 square
feet, and namesake tenant Willis Group Holdings Ltd., with about 141,000 square feet, Mr.
http://www.chicagobusiness.com/realestate/20140421/CRED03/140429979/seyfarth-shaw-moving-to-willis-tower-in-big-space-cut
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5/29/2014
Seyfarth Shaw moving to Willis Tower from Citadel Center - News - Crain's Chicago Business
Kazmierczak said. Willis Tower is owned by a venture of Skokie-based American Landmark
Properties Ltd. and New York investors Joseph Chetrit and Joseph Moinian.
BIG HOLE AT CITADEL CENTER
Seyfarth's exit will create a large hole at Citadel Center for Dearborn Capital Group, although
Seyfarth's termination cost will help fund future leases. New York-based Dearborn Capital
bought the 1.5 million-square-foot Loop tower for $560 million in 2006 before the recession.
Namesake tenant Citadel LLC shed about 100,000 square feet in a lease renewal that
began last year.
A Dearborn Capital executive did not return a call.
Seyfarth has 845 lawyers, including 215 in the Chicago office, its largest, the spokesman said.
The spokesman declined to say how much annual savings the new lease will create for
Seyfarth, whose consulting arm is focused on showing companies how to cut their legal bills.
“They're downsizing in space and they're downsizing in cost,” Mr. Sevim said. “We typically
see a move down (in size) to a more expensive building, or a move to a like building. This is a
double whammy, less space and likely a lower rent.
“I think it shows that not every law firm needs to be in brand-new space to operate their
business. I doubt it's going to negatively impact what their clients think of them. Clients may
look at it as a wise move.”
Related: Who knows
how to slash legal bills? A law firm , of course
This story has been updated to correct a quote attributed to Peter Miller.
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Guy F. 38 days ago
The never ending quest to shed expense, my guess is they could reduce the footprint even
more with a revamped virtual model.
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