Sears Tower to be renamed for new tenant
(Crain’s) — Sears Tower will become Willis Tower.
The insurance broker announced Thursday morning that it will move to the Sears Tower and that the building will be renamed Willis Tower.
London-based Willis Group Holdings said it will consolidate five local offices into more than 140,000 square feet in the 110-story building at 233 S. Wacker Drive. Almost 500 employees will move into the building, Willis said.
Willis said the space is costing the company $14.50 a square foot and that it is not paying extra for the naming rights.
Related story: Sears Tower owners bristle at Willis release
Three years ago, when Sears Tower’s ownership group was looking to refinance the building, a representative compared the value of the naming rights to the building and its observation deck to stadium naming-rights deal, citing examples ranging with fees from $5.8 million to $10 million a year.
Related story: Willis could get Sears Tower naming rights
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Willis is the largest new tenant to move into Sears Tower since the 2001 terrorist attacks. In recent years, the building has suffered several big tenant losses, including its largest tenant, by rental revenue, Ernst & Young U.S. LLP, which is moving in 2012 to an almost-complete skyscraper at 155 N. Wacker Drive.
“Having our name associated with Chicago’s most iconic structure underscores our commitment to this great city, and recognizes Chicago’s importance as a major financial hub and international business center,” Joseph J. Plumeri, chairman and CEO of Willis Group Holdings, said in a release. “We are delighted to be making this bold move and firmly establishing our leading presence in one of the nation’s biggest insurance markets, and it will be wonderful for all our associates to work under one roof.”
Willis currently has about 91,000 square feet in three downtown locations, according to real estate research firm CoStar Group Inc. The largest amount is about 42,000 square feet at 10 S. LaSalle St.
Offices in west suburban Oak Brook and Lombard also will be consolidated into the Sears Tower, Willis said. Willis expects to complete the move by late summer.
Willis is the world’s third-largest insurance brokerage, with brokerage revenue of $2.46 billion in 2007, according to Crain’s sister publication Business Insurance. Chicago-based Aon Corp. ranked second on BI’s 2008 list, with 2007 brokerage revenue of about $7.1 billion; Hilb ranked eighth, with brokerage revenue of about $780 million.
Willis renamed its North American business Willis HRH after its acquisition of Hilb for $2.1 billion, including assumed debt. The transaction increased Willis’s presence in the U.S. market but also increased its debt load at a time when insurance prices are softening, analysts say.
Willis was represented by real estate firm Cushman & Wakefield Inc.
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Of course, combining British and Freudian nomenclature, perhaps renaming it "Big Willie" might catch on a lot faster.
Willis Tower, indeed.
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This is a name change, although a very big one at that. Still, people have gotten used to the Standard Oil/Amoco Building becoming Aon Tower.
The switch from Field's to Macy's was much more than a name change. In the case of Field's, the store was changed in the way it was run, the merchandise it offered and in its style--all in addition to name. On top of that, there's not much one can do to boycott Willis. Despite the fluff piece in today's Sun-Times, Macy's is getting killed in Chicago as a result of what they have done to Marshall Field's.
I hate it but I think we'll have to get used to this change as there is not much we can do about it. On the other hand, with all the continued protests against Macy's (see http://www.FieldsISChicago.org ) it seems the return of Field's is only a matter of time.
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and Willis Tower WILL ALWAYS be SEAR"S TOWER, No matter what a sign says.
Sear's Tower is not even getting any naming rights funds, They must really be DESPERATE for tenants, huh???
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News flash: Someday soon the Cubs are going to have to rebuild or seriously upgrade Wrigley Field, and when they do chances are the naming rights will be sold. What then? Oh my, what will we do?
Chicago is much more than the brand names associated with its landmarks. Until a company comes in and changes the name of the city itself I won't lose any sleep over it.
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Thanks for the clarification, Shannon. Well done.
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If they understood this city and its people they'd know the passion we have for icons such as the Sears Tower, and the idea of a name change would have never come up. I'm fairly certian that when the Hancock Building was sold keeping the name was a stipulation of the sale.
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