July 11, 2019— KBS, one of the largest owners of commercial real estate, announced today that 500 West Madison in Chicago will become Accenture Tower. Today, alongside Illinois Governor JB Pritzker and Chicago Mayor Lori Lightfoot, Accenture (NYSE: ACN) a leading global professional services company that provides a broad range of services and solutions in strategy, consulting, digital, technology and operations, announced its lease at the property by 152,454 square feet and now leases a total of 226,486 square feet, making it the anchor tenant of the building. The property is owned by KBS Real Estate Investment Trust III.
Accenture Tower is a 40-story, 1.47-million-square-foot tower located in Chicago’s West Loop. The post-modern styled building sits above Ogilvie Transportation Center, one of the main suburban train stations connecting downtown Chicago to the suburbs, providing direct access to city trains, buses and expressways. The first two levels of the property are comprised of 80,000 square feet of retail space, with more than 45 stores and restaurants. KBS intends on rebranding lobby and amenity areas to highlight their new partnership with Accenture.
“Our new agreement with Accenture is a testament to the building’s exceptional amenities and prime location, which are aimed to provide tenants a unique work-play lifestyle,” said Dan Park, senior vice president at KBS and asset manager for the property. “Anything one could possibly need during their workday is offered in the Accenture Tower. We are pleased to welcome Accenture as the new anchor tenant and look forward to continuing our partnership.”
Built in 1987, Accenture Tower was Chicago’s first and largest full-service office location. The property currently holds a record for the largest Class A, LEED Gold-certified building in Chicago for its environmental sustainability. KBS underwent a multi-million-dollar renovation of the property in 2015 with the intent of providing tenants best-in-class services and amenities. The property now features a two-level fitness center spanning 14,000 square feet, with a basketball court, group exercise classes, and a new tenant lounge with air hockey, shuffle board and wine lockers. The property has been named Building of the Year on two separate occasions by the Building Owners and Managers Association (BOMA).
“The building brings optimal flexibility and growth for Accenture as it unites its Chicago-based people in one location,” said Wendy Katz, executive director, agency leasing for Cushman and Wakefield who brokered the deal for KBS. “Accenture Tower is situated in the center of the hottest Chicago submarkets, including the West Loop, Fulton Market and River North, making it a prime location for Accenture’s people.”
Historically, the West Loop offered the highest concentration of Class A and Trophy office assets in the Midwest. In addition, Fulton Market, is a new, up-and-coming, eclectic area of Chicago, including headquarters of top companies such as Google and McDonald’s and a growing list of restaurants, bars, entertainment and residences in the area.
“We packed Accenture Tower with a wealth of amenities because we want our tenants, their employees and visitors to have their best experience when they are in the building.” said Marc DeLuca, regional president Eastern United States for KBS. “We could not be happier to have such a highly regarded global company in our flagship Chicago property.”
According to Cushman & Wakefield’s Q1 Chicago Office report, office-using employment has demonstrated a 1.7 percent growth rate annually in Chicago’s Business District. One of the sole reasons for driving growth is investor demand for high-end Class A and trophy towers.
Kyle Kamin, Todd Lippman and Michael Dash of CBRE represented Accenture PLC and Wendy Katz and Matt Lerner of Cushman & Wakefield represented KBS in the transaction.