Chicago Illinois Real Estate Blog

Sears Tower has retained a key tenant in the iconic skyscraper, as Bank of America Corp. has decided against an early termination of its lease for about 181,000 square feet.

“We are pleased that Bank of America has chosen to remain . . . at Sears Tower and that the company views (the building) as part of its growth strategy here in Chicago," Michael Kazmierczak, a senior vice-president with U.S. Equities Realty LLC, which manages the building, says in a written response to a request for an interview.

Sears Tower officials decline further comment.

The Charlotte, N.C.-based banking giant is the trophy tower’s fifth-largest tenant and one of four large tenants that have been testing the market on a possible move.

Sears Tower’s largest tenant, Ernst & Young U.S. LLP, continues its negotiations with John Buck Co. about moving to a new tower. Previously, the target of the talks was a proposed tower by Buck at 222 W. Randolph St.

In a deal that has had several twists and turns, this isn’t the first time that E&Y and Buck have considered 155 N. Wacker, but timing is an obstacle. 155 N. Wacker will be completed next year, three years after E&Y’s lease expires.

Sears Tower’s owners have expressed confidence they will keep E&Y. Buck executives decline to comment.

B of A has been evaluating its downtown space needs in the wake of its acquisition last year of the parent company of LaSalle Bank. B of A, a tenant in Sears Tower since 1995, had an option to terminate its lease in 2009, which would otherwise run until 2015.

But the bank is instead in negotiations to restructure its existing agreement and extend its lease, sources say. As a part of those talks, the bank may give back a portion of one of its four floors, those sources say.

An executive with Chicago-based real estate firm Jones Lang LaSalle Inc., which is advising B of A, did not return a call requesting comment. A B of A spokesman confirms that the bank did not exercise the termination option, but declines to comment on the negotiations.

At Sears Tower, B of A is on the 25th through 28th floors, where it has an expensive trading floor operation.

The bank’s real estate strategy considers several factors, such as employee recruitment and maximizing the bank’s investment, the e-mail message says.

But affordable rent doesn’t hurt. B of A’s current lease was signed in 2005. In the agreement’s final year, 2015, B of A will pay net rent of slightly less than $16 a square foot, not including taxes and operating expenses, sources say.
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