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James R. Thompson Center Baum Realty Group Creates Successful Tenant Transition at State of Illinois Building The James R. Thompson Center (the State of Illinois Building), located at 100 W. Randolph in downtown Chicago, has successfully operated an indoor food court on the building's lower level since original construction of the building was completed in the early 1980s. The food court consists of a large indoor plaza-type seating area surrounded on all sides by a variety of carry-out restaurants and food services. However, as will happen with any mix of retail or restaurant operations, the need for redevelopment will occur to keep tenant mix fresh and exciting, ensuring maximum traffic and optimal lease operations for the building owner. The last major food court redevelopment at the James R. Thompson Center occurred in 1996. At that time, the center's property management company, TPG Realty, contracted with Baum Realty Group, one of Chicago's leading retail brokerage firms, to bring new excitement - and increased traffic -- to the food court. TPG hired Baum Realty based on the company's knowledge of retail leasing in Chicago's Loop as well as its highly successful track record. "The basic issue was that a portion of the James R. Thompson food court was occupied by a sub-par tenant," explained David Baum, Baum Realty Group principal. "Our job was to create a strategy to replace that tenant, find new tenants, and to consult with TPG Realty on a variety of design and construction related issues." One of the key issues was to provide TPG with expert insight into the types of potential new clients that would provide the best mix with existing food court tenants. "That's really a key," stated Allen Joffe, managing broker for Baum Realty. "Given the fact that we work with an extremely diverse group of national and local retailers and restaurantuers, we're able to provide a good awareness of all the factors that need to be taken into consideration." The first step for Baum Realty was to provide TPG with a cost/benefits analysis report, which outlined a variety of options for filling the space and financial projections for each option. Based on the cost/benefit analysis, TPG decided to divide the existing 4,500 square feet vacancy into three separate spaces. "That option clearly provided the owners with the optimal financial return," Joffe explained. "And it meshed very nicely with the types of tenants we thought would make for the best additions to the existing tenant mix." As construction began on the new space alignment, Baum Realty Group continued to work with TPG on a daily basis, providing consultation on design, signage, sight lines and space visibility. Baum Realty representatives remained highly involved during the build-out of the three new spaces, while simultaneously completing the tenant search, providing consultation on lease financial structuring, and ultimately providing TPG with three highly desirable new tenants. The end result was, in the words of TPG Realty president, Raymond Felson, a highly successful redevelopment. Tenants included Piez, Panda Express and It's A Wrap. These tenants did not pose any direct competition to existing tenants. "Baum Realty brought a new, fresh approach to leasing retail space at the center," Felson said. "They gave it their full attention, by having at least two associates working with us on the property at any given time. Baum Realty was truly an important asset to the James R. Thompson Center." |
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1030 W. Chicago Avenue :: Suite 200 :: Chicago, IL :: 60642 :: P: 312.666.3000 :: F: 312.666.7970 :: info@baumrealty.com |
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