Vornado Realty Trust (VNO) has announced a significant expansion of Medline’s presence at THE MART, its iconic property in downtown Chicago. This long-term lease agreement, extending until 2036, will see Medline increase its office space from 51,000 square feet to a substantial 161,000 square feet. This expansion establishes Medline as one of THE MART’s largest tenants, demonstrating the continued attractiveness of this premier location for leading businesses.
Medline, headquartered in Northfield, Illinois, is a major force in the healthcare sector. As the largest manufacturer of medical-surgical products, they provide a comprehensive range of supply chain services and clinical solutions. Medline’s commitment to expanding its footprint at THE MART underlines the importance of this location for their operations and growth strategy.
THE MART, spanning two city blocks, stands as a beacon of innovation in Chicago. This 25-story building is renowned as North America’s largest and most prominent design center. Its 250+ premier design showrooms offer the latest resources for both residential and commercial markets. The building’s strong tenant base, including Medline, showcases its ability to attract leading businesses across diverse sectors.
In the second quarter of 2024, THE MART saw an additional 32,000 square feet of space leased at a weighted average lease term of 7.2 years. This positive leasing activity further reinforces the property’s appeal and its strategic location in the heart of Chicago.
Glen Weiss, executive vice president and co-head of Real Estate at Vornado, highlighted the alignment between THE MART and Medline’s needs. He stated, “With its prime location and unrivaled amenity program, THE MART aligns perfectly with Medline’s needs and continues to be a major bright spot in the Chicago office market.”
Vornado’s focus on high-rent, high-barrier-to-entry markets with a diversified tenant base, like Medline, is expected to drive consistent cash flows and fuel long-term growth. Over the past three months, shares of Vornado Realty Trust have seen a significant increase, outperforming the industry’s growth. This performance reflects investor confidence in the company’s strategic direction and its ability to capitalize on the strength of its assets.
