Real estate software firm VTS inks Fulton Market deal

New York-primarily based VTS expects to shift into the new business in the drop, a important expansion from the 2,600 sq. ft it leases right now in a loft office developing additional west in Fulton Industry at 312 N. Might St.

The deal carries on an business office leasing streak in the previous meatpacking district that has defied the community health crisis, with a run of firms inking offers in Fulton Current market properties when action in other components of downtown has been sluggish. That has delivered a lift for New York-based mostly Tishman Speyer, which co-designed the 13-tale Sangamon property with Chicago real estate investor Mark Goodman and signed leases very last yr with agricultural tech firm Hazel Technologies and cafe reservation platform Tock.

VTS has now joined that roster, and streaming service company Roku is reported to be in advanced talks to lease close to 24,000 square feet in the creating as perfectly, according to a resource acquainted with the negotiations. If that offer is concluded, the setting up would be 78% leased, the supply explained. CoStar Information previously claimed the lease talks.

“Fulton Current market has emerged as 1 of the hottest submarkets in the nation, and we selected to build ourselves in an modern locale that employees want to occur to,” VTS CEO Nick Romito stated in a statement.

The expansion will come a calendar year soon after VTS finalized a $100 million deal to receive Chicago-based Rise Buildings, an additional home administration computer software agency. VTS has also been on a selecting run due to the fact then, quadrupling the dimension of its area workforce to 100 folks, in accordance to a business spokeswoman. The enterprise has also tripled its world-wide headcount above the previous yr to extra than 630 employees, the spokeswoman explained.

Actual estate technological know-how corporations, usually recognised as proptech companies, have drawn a hurry of venture-capital backing throughout the pandemic as properties entrepreneurs have sought out ways to support provide tenants again into their buildings amid the rise of remote perform. Proptech corporations were infused with $9.5 billion in capital from VCs and other traders by means of mid-November 2021, in accordance to a Wall Avenue Journal report citing research from CB Insights. That surpassed the whole-yr file of $9 billion established in 2019.

VTS’ new Fulton Market place lease also stands out as a huge determination to in-man or woman get the job done, as several firms weigh their workspace requires soon after adapting to their employees operating from home during the pandemic.

The business said in a statement to Crain’s that it supports “flexibility for employees,” but that it is seeing signals of workers throughout the current market seeking to be back again in the business office extra frequently.

“What we are looking at among our personnel and the current market at-massive is that talent wishes to arrive into the office environment on a regular foundation when supplied a modern-day, easy, and tech-enabled workplace,” the statement stated. “Our enterprise data as a result much supports that as we see far more persons coming to the business office each 7 days then currently scheduled to be in-office.”

Robert Sevim and Jim Wenk in the Chicago office of tenant rep brokerage Savills negotiated the lease on behalf of VTS. Tishman Speyer’s Adam Mitchell and Ellen Might oversee leasing at 320 N. Sangamon.