J
ack Kim's KORE Investments secured a significant lease extension with Invesco for its 13-story Downers Grove office complex, bucking the trend of commercial tenants downsizing. Atlanta-based Invesco re-upped for 70,000 square feet at 3500 Lacey Road, a 620,000-square-foot building that's seen significant changes in recent years. The deal locks Invesco into a long-term extension ahead of its scheduled lease expiration in April.

    The agreement is welcome news for suburban office landlords struggling to fill space after the pandemic ravaged demand across the Chicago area and nation. Suburban Chicago's overall office vacancy rate has reached an all-time high of over 30%. The deal also marks a significant win for Kim, whose firm had been looking to cash out on the property in 2022 when Health Care Service Corp., the parent of Illinois' largest insurer Blue Cross Blue Shield, moved into a smaller space.

    The KORE-Bentall venture had hired Cushman & Wakefield to sell the property, which was expected to fetch between $160 million and $170 million. However, the sale never materialized due to market uncertainty caused by interest rate hikes. The building remains 89% leased, with Invesco maintaining its rank as the third-largest tenant.