Family offices show commitment to office real estate with two big deals

Two big office real estate deals on both sides of the Atlantic by family offices suggest the demise of the office workplace brought about by the work from home phenomenon due to the Covid-19 pandemic isn’t having such a negative effect on commercial property.

An unnamed Pittsburgh-based single-family office is in the process of buying McDonald’s HQ in Chicago for $430 million, according to reports in the local media. The 500,000+ sq ft office block is located in Fulton Market, an office and retail area in the central business district of Chicago that has become increasingly popular in recent years.  

Meanwhile, a London-based family office, again unnamed, has signed a deal to take around 3,000 sq ft in Mayfair. At £275 per sq ft, the deal represents the highest office rent deal in the London office property market. It comes at a time when much of the city’s office blocks have been only partially occupied due to office staff working from home more than ever in the face of the pandemic.