Posted on March 20, 2009 - by admin

Sears Tower Gets a New Name

Move over Sears Tower, there’s a new guy in town. The London insurance mogul, Willis Group Holdings has decided to exercise their naming rights. Yes, the Sears Tower, one of the tallest buildings in the world will be renamed the Willis Tower. It just doesn’t have the same ring to it…or maybe it could have been named anything years ago and the name change would still have seemed odd. But, alas, new letters will adorn 233 S. Wacker Drive in the near future.

According to the Chicago Real Estate Daily, a few years back, when the ownership group was exploring the possibilities of refinancing, a representative mentioned that there was significant value behind the naming rights of the Sears Tower and observation deck when comparing to stadium naming-rights with fees from $5.8 to $10 million annually. Currently the space is costing Willis Group Holdings $14.50 a square foot and they aren’t paying any additional monies for naming rights.

The name change isn’t the only modification however, Willis is going to consolidate five local offices into 140,000 square feet – meaning approximately 500 employees will relocate into the 110-story building by late summer. I think the move will be excellent for Chicago and the building itself. Big tenant losses have impacted this buildings’ rental revenue and its largest tenant, Ernst & Young U.S. LLP will move down the street in 2012. So, Willis moving in is the right move in my opinion.

But, perhaps my feelings would best be described in a song (thanks Molly Shannon) from the musical, “The Sound of Music:”

                                    So long, farewell, auf wiedersehen, goodnight,

                                    I hate to go and leave this pretty sight.

                                    So long, farewell, auf wiedersehen, adieu…

However, if my farewell song didn’t quite cut the mustard for you – you can always get a commemorative t-shirt. I bet you didn’t see that one coming…get them before they’re all gone!