Sears Tower to pamper visitors

Sears Tower to pamper visitors THOMAS A. CORFMAN Published February 23, 2005 The venture that owns Sears Tower has hired a well-known local real estate firm to optimize the retailing and restaurant experience in the 110-story skyscraper. Key to the assignment is capitalizing on the roughly 1 million visitors who annually visit the tower's observation deck, said Bruce Kaplan, president of Northern Realty Group Ltd., which takes over leasing the building's 159,000 square feet of retail space on four levels. The Skydeck's separate entrance takes visitors to a lackluster lower level, where there are a ticket booth, souvenir shops and a viewing area for an introductory video. "During the peak tourist season, there can be very substantial wait times, and you can turn that from a tedious experience into an enjoyable one by adding interesting attractions, retailing and food," Kaplan said. The 103rd-floor Skydeck underwent a $4 million renovation in 2000, but the attraction was hurt by anxiety over the terrorist attacks. Skydeck revenues declined almost 10 percent, to $7.9 million, in 2001, the most recent year available, according to a summary prepared for financial analysts. Since then, attendance has bounced back, said Kaplan, who declined to comment about revenues. Restaurants and retailing accounted for just 6 percent of the tower's total revenues of $138.4 million in 2001, according to the summary. Security measures, put in place after Sept. 11, make visitors' access to the restaurants and retailers inconvenient, diminishing profitability. A venture that includes New York entrepreneur Joseph Chetrit bought the 3.81 million-square-foot building in April. MB to manage complex: Loeb Realty Partners LLC confirmed that it has awarded to MB Real Estate Services LLC the leasing and management of Michigan Plaza, two buildings totaling nearly 1.9 million square feet of space at 205 and 225 N. Michigan Ave. The coveted assignment is believed to be the third-largest office building management contract in downtown Chicago, behind only Sears Tower and Aon Center, said Peter Ricker, MB's chairman. New York-based Loeb put the contract up for bid after its January acquisition of the buildings, part of the Illinois Center complex. The contract, which sources said is worth at least $400,000 annually, not including leasing commissions, raises MB's downtown management portfolio to more than 8 million square feet. Charter One lease: Charter One Bank has signed a 10-year lease for 52,800 square feet of space at Hyatt Center, 71 S. Wacker Drive, said Jeffrey Liljeberg, a senior vice president with CB Richard Ellis Inc., which represented the Cleveland financial institution. The deal, which includes a first-floor, 2,600-square-foot branch bank, is mostly the result of business expansion by Charter One and its parent, Royal Bank of Scotland PLC. American Express mulls move: American Express Tax and Business Services Inc. is testing the market on a possible move from 1 S. Wacker Drive. Trammell Crow Co. is representing the accounting and consulting unit of the credit card giant. American Express currently leases 182,400 square feet, real estate research firm CoStar Group says. The lease expires in late 2006. American Express referred calls to Peter Livaditis, the Trammell Crow principal handling the assignment, who could not be reached for comment.>