318 N Carpenter in Fulton Market Signs Two Office Leases

CBRE has completed two office leases within 318 N Carpenter in Chicago’s Fulton Market neighborhood. The building’s ownership, Murphy Development and Creek Lane Capital in collaboration with the CBRE team continue to show outstanding results in today’s unique environment. Existing tenant Flock Freight expanded by a full floor to bring its footprint to 31,377 square feet, while Kimball International leased 12,959 square feet on the building’s seventh floor. Kimball International announced it will relocate its current Wells Street showroom to the new space at 318 N Carpenter.

CBRE’s Jon Cordell and Jason Houze represented ownership in the office lease transactions. Scott Kulberg of Resolution Tenant Advisors represented Flock Freight in their expansion and Andy Gooliak and Evan Djikas with Colliers represented Kimball International in their lease.

The 104,000 square foot building has had healthy activity over the past year, adding tenants including Hode Group, Crow Holdings, and Steelite. Building amenities include a rooftop terrace, tenant lounge, and a fitness studio. Delivered in late 2020 by general contractor The Walsh Group, just the 6th and 3rd floors remain available for lease.

“It can’t be overstated how important quality space is in our current market to recruit and retain talent,” said Houze. “Employees want to come to the office if the space is a destination with access to colleagues and unique services not available in other places.”

The Chicago office market has seen a tremendous flight to quality buildings over the past two years. According to a recent CBRE report, 60 office leases of more than 20,000 square feet have been signed since Q1 2020 by tenants relocating in the Chicago market; of those leases, 79 percent upgraded their space by building class and 85 percent moved to a building that was either recently built or underwent a major renovation.

According to CBRE’s recent Occupier Sentiment Survey, flexible open space and collaborative meeting spaces are the most sought-after attributes of “better buildings” by large occupiers which is consistent with the flight to quality trend we are seeing in Chicago and across the U.S.. To maximize the value of their real estate footprints, many firms are investing in upgraded spaces that boost employee engagement and retention.