Grubhub Subleases from Paypal, Moves HQ to Merchandise Mart

Online food ordering company Grubhub will move its headquarters to the Merchandise Mart and follow the ongoing trend of downsizing its office footprint along the way.

Grubhub will shrink its downtown office footprint by about 45 percent, finalizing a deal to sublease roughly 90,000 square feet from PayPal, reported Crain’s. If the deal is completed, Grubhub will relocate its main office from the Burnham Center at 111 W. Washington Street, where the company currently leases approximately 164,000 square feet.

The sublease follows Grubhub’s efforts to cut costs and recover its market share. In June of last year, the company laid off 400 employees or about 15 percent of its workforce. In 2021, Grubhub was acquired for $7.3 billion by Just Eat Takeaway, a rival company based in Amsterdam.

The Mart’s owner, Vornado, has embarked on an ambitious $40 million renovation of the landmark site, including revitalizations to the South Lobby and River Park. JLL was tapped to provide property management services for the updated property by Vornado.

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