Morningstar Invests In Over 350K SF Office Space
Morningstar signed leases for over 350K SF in Chicago, London, and Frankfurt, with nearly four decades of total term length. The investment is significant, with $178M in future leasing obligations.
Original reporting · bisnow.com
Original: “Morningstar Releases New Details On Over 350K SF In Q3 Office Leases”
Read “Morningstar Releases New Details On Over 350K SF In Q3 Office Leases” at Bisnow →)
How this was written. Westchester Made wrote this article with a language model from Bisnow’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Bisnow’s report
- Morningstar signed leases for over 350K SF in Chicago, London, and Frankfurt, with nearly four decades of total term length.
- The company's headquarters deal in Chicago is for more than 275K SF and has an initial lease term of about 17 years.
- The lease commitments are significantly longer than standard U.S. leases, which have an average term length of about seven years.
Morningstar, an investment research firm, has made significant investments in office space over the past few months, according to Bisnow. The company has signed three leases totaling more than 350K SF in Chicago, London, and Frankfurt, with a combined $178M in future leasing obligations. This investment is a major commitment by the company to its office spaces. Bisnow reported that the leases were announced in a quarterly earnings filing released by the company.
The leases include a deal to relocate Morningstar's global headquarters to the Thompson Center in downtown Chicago, where it will co-anchor the building with Google. The headquarters deal is for more than 275K SF and has an initial lease term of about 17 years. The company expects to obtain access to and take possession of the Chicago office space in the second quarter of 2027. This move is significant, as Morningstar has been headquartered in Chicago for more than 40 years.
In addition to the Chicago lease, Morningstar also signed a 75K SF lease in London and a roughly 29K SF lease in Frankfurt. The London lease has an initial term of 12 years, while the Frankfurt lease has a 10-year term. These lease commitments are significantly longer than standard U.S. leases, which have an average term length of about seven years, according to a report from Compstak.
The total term length of the three leases is nearly four decades, demonstrating Morningstar's long-term commitment to its office spaces. The company plans to move to the Thompson Center in late 2028, and so far, it's the largest office lease in Chicago this year. This investment is a major vote of confidence in the office market, particularly in Chicago.
Morningstar's decision to invest in office space is notable, given the current state of the office market. The company's commitment to its headquarters in Chicago and its expansion into other cities demonstrates its confidence in the future of office work. As the company prepares to move into its new headquarters, it will be interesting to see how it utilizes its new space and how it impacts the surrounding area.
The Thompson Center, where Morningstar will be relocating its headquarters, is a significant building in downtown Chicago. The fact that Morningstar will be co-anchoring the building with Google demonstrates the appeal of the location and the building itself. As Morningstar prepares to move in, it will be joining a vibrant community of businesses and organizations in the area.
Questions and answers
How much office space did Morningstar lease in Chicago?
Morningstar leased more than 275K SF in Chicago, where it will relocate its global headquarters.
What is the total term length of the three leases signed by Morningstar?
The total term length of the three leases is nearly four decades.
When does Morningstar expect to move into its new headquarters in Chicago?
Morningstar plans to move to the Thompson Center in late 2028.
