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$50 million investment by a Chicago landlord at its East Loop complex has attracted two companies seeking smaller, modernized office spaces. Wanxiang America Real Estate, owner of the Prudential Plaza complex, has secured a long-term lease with ComPsych, a mental health services provider, and is in talks with consulting firm Compass Lexecon. ComPsych will occupy 50,000 square feet on the seventh floor of One Prudential Plaza through 2026, down from its current 152,000 square feet at NBC Tower. Compass Lexecon is negotiating a lease for over 31,000 square feet at the same property.

    Wanxiang's upgrades to the complex include a glass-enclosed walkway connecting the towers, part of a $50 million investment as part of a deal with its lender. The landlord extended the maturity date of its $389 million mortgage on Prudential Plaza to 2027, adjusting loan terms in response to rising interest rates and increased office vacancies caused by the pandemic. Downtown office vacancy rates reached 26.3 percent in the fourth quarter.

    Other recent leases at Prudential Plaza include engineering firm AECOM and architecture firm HOK. The trend of businesses shedding office space is driven by hybrid and remote work models, as well as a desire for amenities in leased buildings. Compass Lexecon's exit from its current building adds to financial difficulties faced by its landlord, while NBC Tower faces vacancies from other tenants. Wanxiang is working to backfill 114,000 square feet of space set to be vacated by real estate software firm Lessen.