Candy maker Mars is investing $100 million and adding about 600 new jobs in Chicago as it opens an office in Fulton Market, expanding its already large presence in the city after last year’s $36 billion acquisition of Kellanova.
The large corporate expansion is a boost to the Chicago area after the loss of high-profile headquarters such as Boeing, Citadel and Caterpillar in recent years.
Mars Snacking, a Chicago-based division of McLean, Virginia-based industry behemoth Mars, will open a new office at 400 N. Aberdeen St., the company and Illinois Gov. JB Pritzker said Wednesday in a statement.
The announcement confirmed CoStar News’ report from December that Mars had a deal to lease a large portion of the 16-story building owned by Dallas-based Trammell Crow. At the time, specific details of what Mars planned for the new space were unknown.
The lease is for the top five floors, or just under 170,000 square feet, according to people familiar with the situation. That makes it one of the largest new office leases in the city in recent years.
Mars and Trammell Crow declined to comment beyond the statement.
The expansion in Chicago helps boost the city’s standing as a hub for a range of food companies, with global headquarters including the likes of McDonald’s, Kraft Heinz, Mondelez and Conagra Brands. The region recently was named the top U.S. market for corporate facility investments by industry publication Site Selection for the 13th consecutive year, boosted by its central location, universities and diversity of business sectors.
The statement doesn’t say whether the jobs will be newly created or if they will be moving from other cities.
The Fulton Market office will serve as a North America regional office hub, while an accelerator division will take over the former Kellanova headquarters space at 412 N. Wells St. in River North.
“Chicago has long been a hub for our business, and now it is our official home for our North America region and our Accelerator Division — firmly establishing our legacy and our future together,” Andrew Clarke, global president of Mars Snacking, said in the statement. “The Chicagoland area offers the best of all worlds for Mars Snacking — a vibrant urban environment, strong communities and access to world-class talent. We are proud to deepen our roots here, advance the Mars Snacking business, and continue our long-standing commitment to community engagement and responsible business.”
Mars Snacking has committed to creating 602 new full-time jobs and investing $100 million on the new office, with the state providing Economic Development for a Growing Economy (EDGE) incentives, according to the statement.
The incentives will be worth about $43 million, the state confirmed to CoStar News.
“Illinois continues to prove that it’s the right place for companies that want to grow and compete globally,” Pritzker said in the statement. “Mars Snacking’s decision to expand its footprint in Chicago reflects the strength of our state’s workforce, infrastructure and business environment. We’re proud that a company with such an iconic portfolio is building on its history here, creating opportunity for Illinois families and strengthening our economy.”
Kellanova, a snack spin-off from cereal giant Kellogg, was headquartered in Chicago before being acquired last year. With that deal, Mars acquired brands such as Pop-Tarts, Rice Krispies Treats and Pringles.
Mars Snacking said it already has more than 4,000 jobs in the Chicago region, with the new Fulton Market office providing enough room to grow to more than 1,000 employees.
In recent years, Mars also has expanded its Goose Island research-and-development center on the city’s North Side.
Chicago-based Wm. Wrigley Jr. Co. opened that facility in 2005, before the chewing-gum giant was acquired by Mars in 2008.
For the record
The tenant was represented in the lease by CBRE broker Todd Lippman. The landlord was represented by CBRE broker Dan Lyne.