U.S. Department of Health and Human Services will keep approximately 190,000 square feet of office space at 233 N. Michigan Ave in Chicago for another 11 years, extending its lease expiration date to November 30, 2020. HHS has occupied the property since 1999.
The deal resulted in an effective rent of approximately $30.50 per square foot, which included 10 months of rent abatement and tenant improvements totaling an approximate $7.8 million. Leasing commissions, to be paid in this quarter, totaled about $3 million.
Parkway Properties Inc. owns 233 N. Michigan, also known as Two Illinois Center, in the East Loop submarket. The 32-story, 980,362-square-foot office tower is 91 percent leased.
Jack McKinney Jr. and Michael Whiting of J.F. McKinney represented Parkway. Hugh Murphy and Peter Sellis of Jones Lang LaSalle represented HHS through the General Services Administration.