A
German financial services firm, Allianz, is poised to become the latest occupant of John Buck Company's Wacker Drive office tower. The move would significantly reduce its footprint by 62%, from 73,200 square feet at Agave Holdings' 225 West Washington Street to 28,000 square feet at 155 North Wacker Drive. Allianz is expected to occupy an entire floor in the 46-story tower, which offers amenities like a tenant lounge and event center.

    The firm's current lease at West Washington runs through 2031 but may exercise an early termination option in March 2026. CBRE's Kyle Kamin and Jon Milonas are managing the sublease of Allianz's current space and negotiating the lease at North Wacker, while Newmark's Bill Rolander represents John Buck.

    This deal is a win for John Buck, which has been on a leasing streak after losing two major tenants. The building has recently attracted other notable tenants, including Ryan Specialty Group and FTI Consulting. However, filling the large vacancy left by Allianz may prove challenging in today's high-vacancy environment.

    Allianz's shift to North Wacker reflects the trend of companies adopting hybrid or remote work models, leading to reduced office space needs. This trend has contributed to Downtown Chicago's significant tenant exodus since 2020, with over 1.7 million square feet of office space left vacant and a record-high vacancy rate.