David Burden, SIOR, principal, and Tom Berarducci, senior associate, with Colliers International’s Chicago-based Corporate Solutions group, represented Peapod in its 53,000-square-foot headquarters relocation from suburban Skokie to 300 South Riverside Plaza in Chicago.
“After a thorough search of several Loop submarkets, our analysis showed that 300 South Riverside was the ideal headquarters site for Peapod,” said David Burden. “With premier commuter access, attractive building amenities, and a large floor plate with good natural light, it is a desirable site for high-performance. Moreover, there are a growing number of technology companies relocating to the West Loop. Peapod is positioned to recruit talent and expand for years to come.”
Founded in 1989, Peapod is the largest online grocery delivery store in the United States, operating out of 23 urban markets. Peapod moved its headquarters to downtown Chicago to allow the company access to a deeper talent pool of data analytics and tech employees. The company also sought to enhance collaboration with a modern office layout and have adequate space to grow. Peapod had previously occupied a 33,000-square-foot office in Skokie, as well as a smaller space in the Civic Opera Building.
All 180 Skokie-based Peapod employees will move to the headquarters, along with 40 employees currently located in the Civic Opera Building. The move is expected to complete by April 2018.
In a city news release, Mayor Rahm Emanuel stated, “Peapod is a national leader in both the food and tech industries and will be a strong addition to Chicago's thriving innovation community. In Chicago, the company can continue to expand, create new jobs and contribute to our growing economy.”
300 South Riverside Plaza, owned by Third Millennium Group, is a 23-story Class A office tower containing approximately 1.1 million rentable square feet located in Chicago’s West Loop. The West Loop followed an extremely strong start to the year with 33,360 square feet of positive net absorption during the second quarter of 2017, which resulted in the submarket’s vacancy rate holding steady at 14.8 percent.
Matt Pistorio and Joy Jordan of The Telos Group represented ownership in the transaction.