Codal Leased New Chicago Office Space
The firm expanded its footprint to 24,000 square feet as the tower undergoes a $30 million renovation.
Updated on Sept. 24, 2026 in Commercial
Live Poll
Do you believe expensive office renovations are necessary to attract businesses to your city?
Codal has moved from its former 16,000-square-foot office at the Old Post Office to a 24,000-square-foot space at 200 South Wacker Drive. The move follows the recent purchase of the tower by Glenstar and Patrick Halloran for $68 million.
Why it matters
The building owners are investing $30 million into renovations, including adding golf simulators and an outdoor lounge, to attract tenants and command higher rents. Codal selected the space to support its plans to more than double its current headcount of 50 people by early 2027.
The tower at 200 South Wacker Drive sold for $68 million, which is 68 percent less than its 2013 sale price. The building owners are now funding a $30 million renovation project across the 761,775-square-foot property.
The players
Codal
A growing firm currently employing 50 people that recently expanded its office footprint in Chicago.
Glenstar
A real estate firm that purchased the 200 South Wacker Drive tower and is leading a $30 million renovation project.
Patrick Halloran
A partner who co-purchased the 200 South Wacker Drive tower for $68 million to revitalize the property.
The details
Codal secured its larger office space by exercising an early termination option on its previous lease at the Old Post Office. The move to the 41-story tower allows the firm to increase its floor space by 50 percent, moving from 16,000 to 24,000 square feet. Owners Glenstar and Patrick Halloran are renovating the lobby and adding new amenities to increase occupancy from the current 57 percent lease rate.
Timeline
2013: The building previously sold for a higher price.
2025: Glenstar and Patrick Halloran purchased the tower.
End of 2026: Construction on building upgrades is slated for completion.
First half of 2027: Codal plans to more than double its headcount.
Money Landscape
The current sale price marks a sharp departure from the building's 2013 valuation, reflecting shifting market conditions for legacy office space. This property's valuation drop highlights the broader commercial real estate repricing cycle currently impacting older office towers in major urban markets.
Businesses looking to relocate should track how major renovations in their target buildings may influence future lease rates. Consult with a commercial real estate broker to understand how building-specific capital improvements can affect long-term occupancy costs.
The takeaway
Commercial office tenants are increasingly prioritizing upgraded amenities as owners work to revitalize older assets. Consider tracking local office vacancy trends if your organization is weighing a move or lease renewal within the next two years.
Further reading
For more on local market shifts, see our coverage of Commercial real estate.
Source note: This article includes information reported by The Real Deal New York.
Live Poll
Do you believe expensive office renovations are necessary to attract businesses to your city?
