ARCO/Murray Quadruples Square Footage With Two New Downtown Office Leases, Further Committing to the Future of Chicago

In the first quarter of 2024, the vacancy rate was sitting just above 22% in the Chicago office market according to NAI Hiffman data. Despite the market hitting a new cyclical high, ARCO/Murray was able to buck the trend signing two new office leases at 311 W. Huron in Chicago’s River North neighborhood and 500 W. Monroe in the West Loop. The ‘Top 3 U.S. Design-Builder’ (ENR) has now quadrupled their square footage in the downtown market over the last 18 months.

ARCO’s first downtown Chicago location was at 308 W. Erie in 2016 and housed just under 25 employees. In July 2019, ARCO/Murray leased 13,000 SF of space in the West Loop, close to Fulton Market. The pandemic provided a unique opportunity for ARCO/Murray to add new verticals, and from 2019-2022, the team experienced unprecedented growth.

This led to a sublease at 549 W. Randolph – an office previously renovated by ARCO/Murray’s Tenant Solutions division for a former tenant. Thirty employees from the company’s Industrial team moved at the tail end of 2022 to allow for continued expansion. In Spring 2024, ARCO/Murray added the following two new offices and ended their previous lease from 2019 in West Loop/Fulton Market.

311 W. Huron (River North)

311 W. Huron, also named Verso, is a brand new 153,000 SF Class A development designed by NORR and owned by North Wells Capital and Urban Innovations. ARCO/Murray served as general contractor on the base build and then designed and leased 16,300 SF of space. Construction was completed in April of this year with ARCO/Murray becoming the first tenant. ARCO/Murray’s Multifamily and Green Infrastructure divisions occupy the sixth floor of this 15-story, Class A office. High-end building amenities include a fitness center, penthouse roof deck, outdoor terraces, conference facility, and tenant lounge.

“It’s been exciting to see the vision for Verso come to life and have our associates be able to work in an office building we just completed from the ground-up,” said Josh Przyborowski, President at ARCO/Murray. “It adds an extra sense of pride and ownership – and hopefully can be a catalyst for additional leasing activity in the area.”

500 W. Monroe (West Loop)

ARCO/Murray signed a 3.5 year sublease at the newly remodeled 500 W. Monroe building. Sixty employees across ARCO/Murray’s Tenant Solutions, Sports & Entertainment, Innovation, Preconstruction, Architecture and various operational divisions moved at the end of April to the 17th Floor. Matt Cowie, Bill Sheehy and Mark Cassata of CBRE brokered the deal, which includes close to 29,000 SF of rentable space.

“While ARCO/Murray is a national design-build general contractor, we like to invest in the communities and markets where we service our clients. We’ve been fortunate to go from 25 to over 170 associates in our downtown Chicago locations, as our projects and offerings have increased locally,” said Ross Allen, Executive Vice President of ARCO/Murray. He continued, “We’re committed to Chicago, and hopefully, these new offices will give us the opportunity to further expand while providing employees with new modern spaces that truly embody our company culture and values.”

Future Chicagoland Expansion

ARCO/Murray will be doubling their square footage in Downers Grove, Ill. later this year with the purchase of a 125,000 SF building at 3113 Woodcreek Drive. The four-story office building, across the street from ARCO/Murray’s current office, is under construction and set to be completed this Fall. The office is being designed and constructed by ARCO and will feature a basketball court, fitness center, expansive amenity area & atrium, conference center, covered parking garage and more collaboration spaces. Once completed, ARCO/Murray will occupy nearly 180,000 SF across four offices in the Chicagoland area.

“Our associates and the way in which they personify ARCO’s ‘Work Hard. Be a Pro. Have Fun.’ mantra drive both the need and overall design of our new offices,” added Brad Dannegger, CEO and Co- Chairman of ARCO/Murray. “We have a great history of executing everything from office and adaptive reuse to entertainment and industrial projects in the Chicagoland area. We want to continue building our future here.”

About ARCO/Murray

ARCO/Murray is a single source design-builder that specializes in commercial construction for Fortune 500 companies and individual businesses. Across 40 North American offices, teams of engineers, project managers, superintendents, architects, and designers execute some of the most demanding projects. ARCO/Murray is the 2023 NAIOP Chicago General Contractor of the Year and recipient of multiple ‘Best Place to Work’ awards nationally. We pride ourselves in offering the best solutions and adding value to every project through ‘Better People, Better Planning and Better Execution.’

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Additional Photos of ARCO’s Chicago Offices and 311 W. Huron Project