Medline Triples Its Presence at THE MART, Vornado Realty Trust’s Iconic Downtown Chicago Property

Rhea-AI Summary

Medline, a leading healthcare company, has significantly expanded its presence at THE MART, Vornado Realty Trust's (NYSE: VNO) iconic property in downtown Chicago. The company has more than tripled its office space from 51,000 to 161,000 square feet, securing a long-term lease through 2036. This expansion makes Medline one of THE MART's largest tenants.

THE MART, a 3.7-million-square-foot property, is home to numerous creative and innovative companies. Vornado recently completed a $70 million renovation program, enhancing the building's amenities and features. This expansion underscores THE MART's continued appeal in the Chicago office market and Medline's commitment to growth and employee well-being.

Positive

• Medline expanded its office space from 51,000 to 161,000 square feet at THE MART
• Long-term lease secured through 2036, indicating stable tenant relationship
• Vornado completed a $70 million renovation program, enhancing property value
• THE MART continues to attract major tenants, maintaining its appeal in the Chicago office market

Negative

• None.

Real Estate Analyst

Medline's significant expansion at THE MART is a positive indicator for the Chicago office market. The 161,000 square foot lease demonstrates strong demand for premium office space, particularly from growing healthcare companies. This deal is notable for several reasons:

• It's a long-term commitment through 2036, showing confidence in the property and location.
• The expansion triples Medline's presence, making them one of THE MART's largest tenants.
• It utilizes a contiguous space, which is often preferred for operational efficiency.

For Vornado Realty Trust, this deal strengthens their tenant mix and potentially increases the property's value. The $70 million renovation investment appears to be paying off, attracting and retaining high-quality tenants. This lease likely improves THE MART's occupancy rate and could positively impact Vornado's revenue stream from this asset.

Healthcare Industry Analyst

Medline's expansion at THE MART reflects the robust growth in the healthcare sector. As the largest medical-surgical product manufacturer and supply chain provider, Medline's need for additional space indicates:

• Increased demand for medical supplies and services
• Potential expansion of their product lines or service offerings
• Growth in their workforce, possibly in areas like R&D, sales, or operations

This move aligns with the trend of healthcare companies centralizing operations in urban centers to attract talent and foster innovation. The proximity to other tech and healthcare companies at THE MART could lead to potential collaborations or partnerships, further driving Medline's growth. Investors should view this as a positive signal for both Medline and the broader healthcare industry, suggesting continued expansion and investment in the sector.

Medline’s 161,000 SF Lease Makes the Growing Healthcare Company One of THE MART’s Largest Tenants

THE MART

3.7 MM SF Property on the River North, Chicago, IL

CHICAGO, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Medline and Vornado Realty Trust (NYSE: VNO) today announced an agreement to expand Medline’s presence at THE MART by 110,000 square feet, making it one of the largest tenants at Vornado’s iconic, 3.7-million-square-foot property in downtown Chicago.

Medline will more than triple its offices in THE MART from 51,000 to 161,000 square feet as part of a single, contiguous space across the majority of the 12^th floor, committing to a long term lease with Vornado which will run through 2036.

Headquartered in Northfield, Illinois, Medline is the healthcare industry’s largest medical-surgical product manufacturer, supply chain provider and clinical solutions partner. Medline currently has over 39,000 employees worldwide and does business in more than 100 countries and territories. Medline brings improved clinical, financial and operational outcomes across all points of care —from large healthcare systems and independent physician practices to home health patients and their families.

“As Medline continues to grow, the company is committed to ensuring it has the space needed for employees to thrive, collaborate and feel connected to the culture that has sustained us through the years,” said Kate Slattery, Vice President of Real Estate and Construction for Medline. “Medline regularly optimizes our footprint and operations to best serve our customers and empower our team members. We are thrilled with the results from our current offices in THE MART and are pleased to be expanding this partnership further.”

“Medline is one of the Chicago area’s largest and most pre-eminent companies, and we are thrilled to be able to support their continued growth,” said Glen Weiss, Executive Vice President, Co-Head of Real Estate at Vornado. “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.”

Spanning two full city blocks, THE MART serves as the home to Chicago's most creative and technologically innovative companies, including Motorola Mobility, 1871, PayPal and MATTER, as well as Fortune 500 companies Conagra Brands, Allstate, Beam Suntory, Avant and Grainger. The 25-story building is also the largest and most important center for design in North America with more than 250 premier design showrooms offering the latest resources for both residential and commercial markets.

Vornado recently completed the final phase of a more than $70 million renovation program, which incorporates a grand staircase leading to a second floor amenity program and gathering space that features a range of food and beverage options, a state-of-the-art fitness and conference center, an exclusive tenant lounge and an expansive landscaped River Park, serving as a “front lawn” to the building.

Medline was represented in the transaction by J. Frank Franzese and Steven Bauer of Colliers. Vornado was represented by Andrea Saewitz, Wendy Katz & Ben Cleveland of Stream Realty.

About Medline
Medline makes healthcare run better. Through its unique offering of world-class products, supply chain resilience and clinical practice expertise, Medline delivers improved clinical, financial and operational outcomes across all points of care. Headquartered in Northfield, Illinois, Medline is the healthcare industry’s largest medical-surgical product manufacturer, supply chain provider and clinical solutions partner. The company employs more than 39,000 people worldwide and operates in over 100 countries and territories. For more information, visit www.medline.com.

About Vornado Realty Trust

Vornado Realty Trust is a fully integrated real estate investment trust (“REIT”) with a portfolio of premier New York City office and retail assets and the developer of the new PENN DISTRICT. While concentrated in New York, Vornado also owns the premier assets in both Chicago and San Francisco. Vornado is a real estate industry leader in sustainability, with over 27 million square feet of LEED-certified buildings and over 23 million square feet at LEED Gold or Platinum.

CONTACT (Medline)
Kristi Krasovetz - Director, Public Relations
(773) 251-4762

CONTACT (Vornado Realty Trust)
Thomas Sanelli
(212) 894-7000

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2023. Currently, some of the factors are the increased interest rates and inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/321b33fe-a357-441a-a56a-466f4d4ac0cd

FAQ

How much did Medline expand its office space at THE MART?

Medline expanded its office space at THE MART from 51,000 to 161,000 square feet, more than tripling its presence.

What is the duration of Medline's new lease at THE MART (VNO)?

Medline's new lease at THE MART, owned by Vornado Realty Trust (VNO), runs through 2036.

How much did Vornado Realty Trust (VNO) invest in renovating THE MART?

Vornado Realty Trust (VNO) recently completed a renovation program for THE MART that cost over $70 million.

What is the total square footage of THE MART owned by Vornado Realty Trust (VNO)?

THE MART, owned by Vornado Realty Trust (VNO), is a 3.7-million-square-foot property located in downtown Chicago.